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Spillovers from high growth firms: evidence from Hungary

Author

Listed:
  • Francesca de Nicola

    (The World Bank)

  • Balázs Muraközy

    (University of Liverpool
    Centre for Economic and Regional Sciences Budapest)

  • Shawn W. Tan

    (The World Bank)

Abstract

How do high-growth firms (HGFs) affect the rest of the economy? We explore this question using Hungarian administrative microdata. Relying on the Birch definition of HGFs, we find evidence for stronger productivity growth for firms operating in industries with more HGFs and for firms supplying industries with more HGFs. Knowledge spillovers or the surge of HGFs’ demand for intermediate inputs could explain these positive associations. Firms with intermediate productivity levels seem most likely to benefit from this effect, while we find no differences by age or export status. The results hold irrespective of the level of spatial aggregation and are robust to alternative definitions of HGFs as well as different measures of productivity or spillover.

Suggested Citation

  • Francesca de Nicola & Balázs Muraközy & Shawn W. Tan, 2021. "Spillovers from high growth firms: evidence from Hungary," Small Business Economics, Springer, vol. 57(1), pages 127-150, June.
    • Handle: RePEc:kap:sbusec:v:57:y:2021:i:1:d:10.1007_s11187-019-00296-w
    DOI: 10.1007/s11187-019-00296-w
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    More about this item

    Keywords

    High growth firms; Productivity growth; Spillovers; Vertical linkages; Hungary;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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