Firm Size and Development

Hugo Hopenhayn ()

Economía Journal, 2016, vol. Volume 17 Number 1, issue Fall 2016, 27-49

Abstract: Firm size increases with GDP per capita. The paper develops a simple framework to explore three alternative sources of variation that may explain this correlation: (1) excessive entry; (2) differences in the distribution of rm productivities; and (3) differences in returns to scale. The results show that all these sources of variation lead to substantial differences in rm size. GDP per capita is also signi cantly affected, but by an order of magnitude less.

Keywords: aggregate productivity; rm size distribution; rm dynamics; misallocation (search for similar items in EconPapers)
JEL-codes: E13 O11 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (14)

Downloads: (external link)
http://economia.lacea.org/contents.htm

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:col:000425:015155

Access Statistics for this article

More articles in Economía Journal from The Latin American and Caribbean Economic Association - LACEA Contact information at EDIRC.
Bibliographic data for series maintained by LACEA ().