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Determinants of high-growth firms:why do some countries have more high-growth firms than others?

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  • Teruel Carrizosa, Mercedes
  • De Wit, Gerrit

Abstract

High-growth firms have been shown to be a key factor for economic growth and structural change. This paper analyses the determinants of the number of high-growth firms in a country for 17 OECD countries between 1999 and 2005, using the Amadeus data set, the GEM data set, and others. The first contribution of this paper is that it is – as far as we know – the first empirical analysis of high-growth firms at the country level on the basis of actual measured growth. Second, we find indicative empirical evidence for three driving forces of high growth, viz. entrepreneurship, institutional settings, and opportunities for growth, all in accordance with theory and empirical findings in related fields of research. Third, the paper gives a tentative explanation of the differences in the average percentage of high-growth firms between countries. Finally, the paper gives some clues for policy makers how to promote high-growth firms. Keywords: high-growth firms, fast growing firms, entrepreneurship, institutional obstacles, opportunities for growth

Suggested Citation

  • Teruel Carrizosa, Mercedes & De Wit, Gerrit, 2011. "Determinants of high-growth firms:why do some countries have more high-growth firms than others?," Working Papers 2072/179670, Universitat Rovira i Virgili, Department of Economics.
    • Handle: RePEc:urv:wpaper:2072/179670
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    Cited by:

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    2. Daunfeldt, Sven-Olov & Westerberg, Hans, 2019. "High-growth firms and the labor market entry of first generation immigrants," HFI Working Papers 2, Institute of Retail Economics (Handelns Forskningsinstitut).
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    4. Daunfeldt, Sven-Olov & Seerar Westerberg, Hans, 2017. "Are unemployed immigrants more likely to be hired by high-growth firms? Evidence from matched employer-employee data," HUI Working Papers 128, HUI Research.

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    Empreses -- Creixement; Emprenedoria; 33 - Economia; 65 - Gestió i organització. Administració i direcció d'empreses. Publicitat. Relacions públiques. Mitjans de comunicació de masses;
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