High-Growth Firms: Rising Tide Lifts All Boats

Francesca de Nicola, Balazs Murakozy and Shawn Tan

No 8642, Policy Research Working Paper Series from The World Bank

Abstract: How do high-growth firms affect the rest of the economy? This paper explores this question using Hungarian administrative microdata. It finds evidence of stronger productivity growth for firms supplying and operating in industries with more high-growth firms. The surge of high-growth firms'demand for intermediate inputs could explain this positive vertical spillover. Firms with intermediate productivity levels seem most likely to benefit from this effect. The results hold irrespective of the level of spatial aggregation.

Keywords: General Manufacturing; Textiles; Apparel&Leather Industry; Food&Beverage Industry; Common Carriers Industry; Construction Industry; Business Cycles and Stabilization Policies; Pulp&Paper Industry; Plastics&Rubber Industry; Private Sector Economics; Marketing; Private Sector Development Law; Labor Markets; Rural Labor Markets (search for similar items in EconPapers)
Date: 2018-11-09
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:8642

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