Times are a changin'? The emergence of new firms and rank persistence

Stefan Schneck

No 01/18, Working Papers from Institut für Mittelstandsforschung (IfM) Bonn

Abstract: Young firms are known to grow at a faster rate than incumbents. With administrative firm data from Germany, we show that the higher growth rates indeed translate into upward mobility within the firm size distribution. Young firms are therefore not only able to catch up, but also to grow larger in absolute values. Recentered influence function regression results reveal that young firms cause significant rank mobility within the stock of firms, which even holds when the local skewness of the firm size distribution is accounted for. The results clearly indicate a Schumpeterian growth process where young firms challenge established ones.

Keywords: competition; entrepreneurship; firm entry; firm growth; sales mobility (search for similar items in EconPapers)
JEL-codes: L10 L25 L26 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-bec, nep-ent, nep-eur and nep-ind
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/173177/1/1010828495.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifmwps:0118

Access Statistics for this paper

More papers in Working Papers from Institut für Mittelstandsforschung (IfM) Bonn Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().