@article{doi:10.1111/ecin.12722,
author = {Caunedo, Julieta and Yurdagul, Emircan},
title = {WHO QUITS NEXT? FIRM GROWTH IN GROWING ECONOMIES},
journal = {Economic Inquiry},
volume = {0},
number = {0},
pages = {},
doi = {10.1111/ecin.12722},
url = {https://onlinelibrary.wiley.com/doi/abs/10.1111/ecin.12722},
eprint = {https://onlinelibrary.wiley.com/doi/pdf/10.1111/ecin.12722},
abstract = {We document novel facts about the relationship between aggregate growth and firm dynamics using a large set of countries. We argue that firm employment patterns are not necessarily informative about cross-country differences in aggregate growth because they are induced by changes in the productivity of a firm relative to others. In contrast, aggregate growth is linked to average firm-level productivity growth and firm age. We formalize this intuition through a tractable model of endogenous aggregate growth and firm dynamics where firms realize positive returns to investment with some probability. We find that cross-country disparities in this probability can account for two-thirds of the variation in aggregate growth. (JEL D21, D22, E23, O4)}
}