Small firms and economic growth in europe
Economic activity in manufacturing industries moved away from large firms toward small firms in many Organization for Economic Cooperation and Development countries during the last two decades. However, the speed of this industrial transformation process has varied considerably across countries. This paper investigates the consequences of lagging behind in this restructuring process in manufacturing. A sample of 14 manufacturing industries in 13 European countries has been constructed for this purpose. It is found that, on average, the employment share of large firms in 1990 has a negative effect on output growth in the subsequent four-year period. This provides support for specific policies introduced during the 1980s in European countries stimulating small enterprises. Copyright International Atlantic Economic Society 1998
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Volume (Year): 26 (1998)
Issue (Month): 2 (June)
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References listed on IDEAS
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- Carlsson, Bo, 1992. "The Rise of Small Business: Causes and Consequences," Working Paper Series 357, Research Institute of Industrial Economics.
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Small Business Economics,
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- Stephen Nickell, 1993. "Competition and Corporate Performance," CEP Discussion Papers dp0182, Centre for Economic Performance, LSE.
- Carree, Martin & Klomp, Luuk, 1996. "Small Business and Job Creation: A Comment," Small Business Economics, Springer, vol. 8(4), pages 317-322, August.
- You, Jong-Il, 1995. "Small Firms in Economic Theory," Cambridge Journal of Economics, Oxford University Press, vol. 19(3), pages 441-462, June. Full references (including those not matched with items on IDEAS)
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