Size and Age of Establishments : Evidence from Developing Countries
Survey data from 120 developing countries are used to examine the relation between establishment size and age in the formal sector. Existing research suggests that manufacturing establishments in developing countries do not grow over time, most lik...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2013/12/18623482/size-age-establishments-evidence-developing-countries http://hdl.handle.net/10986/16934 |
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okr-10986-169342021-04-23T14:03:33Z Size and Age of Establishments : Evidence from Developing Countries Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav ACCOUNTING AGE GROUP AGE GROUPS BANK BRANCHES BANKING REFORM BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BRANCH BRANCHES BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL EXPENDITURES CAPITAL MARKET COMMERCIAL BANKS COMPANY CONTRACT LABOR CORPORATE FINANCE CORPORATIONS CORRELATIONS COUNTRY COMPARISONS CREDIT LINES CROSS-SECTIONAL EVIDENCE DEPOSIT INSURANCE DEPOSITS DEVELOPMENT RESEARCH ECONOMETRICS ECONOMICS EMPLOYEE EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT LEVEL EMPLOYMENT LEVELS EMPLOYMENT PROTECTION LEGISLATION ENTREPRENEURIAL ACTIVITY ENTREPRENEURSHIP EXPANSION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL STRUCTURE FINANCIAL SYSTEMS FIRM EXIT FIRM GROWTH FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM SIZE DISTRIBUTION FIRMS FOREIGN BANKS INDUSTRY CHARACTERISTICS INFORMAL SECTOR JOB CREATION JOBS LABOR FORCE LABOR INTENSITY LABOR LAWS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET REGULATION LABOR MARKET REGULATIONS LABOR MARKETS LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR MARKET LABOUR MARKET REGULATION LAWS LEGISLATION LICENSING MACHINERY MACROECONOMICS MANUFACTURING ESTABLISHMENT MANUFACTURING ESTABLISHMENTS MANUFACTURING INDUSTRIES MERGERS METHODOLOGY MIGRATION NATIONALIZED BANKS PLANT SIZE PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY IMPROVEMENTS REGIONAL RURAL BANKS RESEARCH WORKING PAPERS RESEARCHERS RESERVE BANK OF INDIA RIGID LABOR MARKET SIZE OF FIRMS SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SURVEY DATA SURVEY INSTRUMENTS TOTAL EMPLOYMENT TRANSPORT UNEMPLOYMENT UNPAID FAMILY WORKERS WAGES WATER SUPPLY WORKER WORKERS firm life cycle Survey data from 120 developing countries are used to examine the relation between establishment size and age in the formal sector. Existing research suggests that manufacturing establishments in developing countries do not grow over time, most likely because of market imperfections and regulations. To the contrary, this paper finds that the average plant in developing countries that is more than 40 years old employs almost five times as many workers as the average plant that is five years old or younger. The analysis finds consistent evidence when it looks within a large country, India, based on detailed manufacturing census data over 23 years. It also finds that differences in financial development across Indian states, while substantial, have a minor effect on firm growth, consistent with inefficiency of state-owned financial systems. These results hold controlling for differences in labor regulations across states, capital intensity, labor regulations, and firms born before and after the major reforms. 2014-02-05T18:33:55Z 2014-02-05T18:33:55Z 2013-12 http://documents.worldbank.org/curated/en/2013/12/18623482/size-age-establishments-evidence-developing-countries http://hdl.handle.net/10986/16934 English en_US Policy Research Working Paper;No. 6718 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia India |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING AGE GROUP AGE GROUPS BANK BRANCHES BANKING REFORM BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BRANCH BRANCHES BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL EXPENDITURES CAPITAL MARKET COMMERCIAL BANKS COMPANY CONTRACT LABOR CORPORATE FINANCE CORPORATIONS CORRELATIONS COUNTRY COMPARISONS CREDIT LINES CROSS-SECTIONAL EVIDENCE DEPOSIT INSURANCE DEPOSITS DEVELOPMENT RESEARCH ECONOMETRICS ECONOMICS EMPLOYEE EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT LEVEL EMPLOYMENT LEVELS EMPLOYMENT PROTECTION LEGISLATION ENTREPRENEURIAL ACTIVITY ENTREPRENEURSHIP EXPANSION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL STRUCTURE FINANCIAL SYSTEMS FIRM EXIT FIRM GROWTH FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM SIZE DISTRIBUTION FIRMS FOREIGN BANKS INDUSTRY CHARACTERISTICS INFORMAL SECTOR JOB CREATION JOBS LABOR FORCE LABOR INTENSITY LABOR LAWS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET REGULATION LABOR MARKET REGULATIONS LABOR MARKETS LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR MARKET LABOUR MARKET REGULATION LAWS LEGISLATION LICENSING MACHINERY MACROECONOMICS MANUFACTURING ESTABLISHMENT MANUFACTURING ESTABLISHMENTS MANUFACTURING INDUSTRIES MERGERS METHODOLOGY MIGRATION NATIONALIZED BANKS PLANT SIZE PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY IMPROVEMENTS REGIONAL RURAL BANKS RESEARCH WORKING PAPERS RESEARCHERS RESERVE BANK OF INDIA RIGID LABOR MARKET SIZE OF FIRMS SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SURVEY DATA SURVEY INSTRUMENTS TOTAL EMPLOYMENT TRANSPORT UNEMPLOYMENT UNPAID FAMILY WORKERS WAGES WATER SUPPLY WORKER WORKERS firm life cycle |
| spellingShingle |
ACCOUNTING AGE GROUP AGE GROUPS BANK BRANCHES BANKING REFORM BANKING REGULATION BANKING SECTOR BANKING SERVICES BANKING SYSTEM BANKING SYSTEMS BANKS BRANCH BRANCHES BUSINESS ENVIRONMENT BUSINESS ENVIRONMENTS CAPITAL EXPENDITURES CAPITAL MARKET COMMERCIAL BANKS COMPANY CONTRACT LABOR CORPORATE FINANCE CORPORATIONS CORRELATIONS COUNTRY COMPARISONS CREDIT LINES CROSS-SECTIONAL EVIDENCE DEPOSIT INSURANCE DEPOSITS DEVELOPMENT RESEARCH ECONOMETRICS ECONOMICS EMPLOYEE EMPLOYMENT EMPLOYMENT DYNAMICS EMPLOYMENT LEVEL EMPLOYMENT LEVELS EMPLOYMENT PROTECTION LEGISLATION ENTREPRENEURIAL ACTIVITY ENTREPRENEURSHIP EXPANSION FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL STRUCTURE FINANCIAL SYSTEMS FIRM EXIT FIRM GROWTH FIRM LEVEL FIRM PERFORMANCE FIRM SIZE FIRM SIZE DISTRIBUTION FIRMS FOREIGN BANKS INDUSTRY CHARACTERISTICS INFORMAL SECTOR JOB CREATION JOBS LABOR FORCE LABOR INTENSITY LABOR LAWS LABOR MARKET INSTITUTIONS LABOR MARKET OUTCOMES LABOR MARKET REGULATION LABOR MARKET REGULATIONS LABOR MARKETS LABOR PRODUCTIVITY LABOR REGULATION LABOR REGULATIONS LABOUR LABOUR MARKET LABOUR MARKET REGULATION LAWS LEGISLATION LICENSING MACHINERY MACROECONOMICS MANUFACTURING ESTABLISHMENT MANUFACTURING ESTABLISHMENTS MANUFACTURING INDUSTRIES MERGERS METHODOLOGY MIGRATION NATIONALIZED BANKS PLANT SIZE PRIVATE BANKS PRIVATE SECTOR PRIVATIZATION PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY IMPROVEMENTS REGIONAL RURAL BANKS RESEARCH WORKING PAPERS RESEARCHERS RESERVE BANK OF INDIA RIGID LABOR MARKET SIZE OF FIRMS SMALL ENTERPRISES SMALL FIRM SMALL FIRMS SURVEY DATA SURVEY INSTRUMENTS TOTAL EMPLOYMENT TRANSPORT UNEMPLOYMENT UNPAID FAMILY WORKERS WAGES WATER SUPPLY WORKER WORKERS firm life cycle Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav Size and Age of Establishments : Evidence from Developing Countries |
| geographic_facet |
South Asia India |
| relation |
Policy Research Working Paper;No. 6718 |
| description |
Survey data from 120 developing
countries are used to examine the relation between
establishment size and age in the formal sector. Existing
research suggests that manufacturing establishments in
developing countries do not grow over time, most likely
because of market imperfections and regulations. To the
contrary, this paper finds that the average plant in
developing countries that is more than 40 years old employs
almost five times as many workers as the average plant that
is five years old or younger. The analysis finds consistent
evidence when it looks within a large country, India, based
on detailed manufacturing census data over 23 years. It also
finds that differences in financial development across
Indian states, while substantial, have a minor effect on
firm growth, consistent with inefficiency of state-owned
financial systems. These results hold controlling for
differences in labor regulations across states, capital
intensity, labor regulations, and firms born before and
after the major reforms. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav |
| author_facet |
Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav |
| author_sort |
Ayyagari, Meghana |
| title |
Size and Age of Establishments : Evidence from Developing Countries |
| title_short |
Size and Age of Establishments : Evidence from Developing Countries |
| title_full |
Size and Age of Establishments : Evidence from Developing Countries |
| title_fullStr |
Size and Age of Establishments : Evidence from Developing Countries |
| title_full_unstemmed |
Size and Age of Establishments : Evidence from Developing Countries |
| title_sort |
size and age of establishments : evidence from developing countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2013/12/18623482/size-age-establishments-evidence-developing-countries http://hdl.handle.net/10986/16934 |
| _version_ |
1764434980312711168 |