Growth Dynamics of Young Small Firms: Evidence from Tunisia

Hassan Arouri, Adel Ben Youssef, Francesco Quatraro and Marco Vivarelli ()

No 197, GLO Discussion Paper Series from Global Labor Organization (GLO)

Abstract: The aim of this paper is to investigate the growth dynamics of young small firms (in contrast with larger and older incumbents) in a developing country context, using a unique and comprehensive dataset of non-agricultural Tunisian companies. Our results suggest that significant differences between young and mature firms can be found as far as the drivers of their growth are concerned. The key finding being that - while consistently with the extant literature Gibrat’s law is overall rejected - the negative impact of the initial size is significantly larger for young than mature firms. This result has interesting policy implications: since smaller young firms are particularly conducive to employment generation, they can be considered good candidate for targeted accompanying policies addressed to sustain their post-entry growth.

Keywords: firm’s growth; young firms; Gibrat’s law; Tunisia (search for similar items in EconPapers)
JEL-codes: L26 O12 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-afr, nep-ara, nep-cse, nep-ent, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/176805/1/GLO-DP-0197.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:glodps:197

Access Statistics for this paper

More papers in GLO Discussion Paper Series from Global Labor Organization (GLO) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().