Are Large Firms Born or Made? : Evidence from Developing Countries
This paper uses survey data from 120 developing countries to compare the role of institutions with firm characteristics at the time of creation of the firm in explaining the size, growth, and productivity of firms over their lifecycle. The study fi...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2015/08/24960357/large-firms-born-or-made-evidence-developing-countries http://hdl.handle.net/10986/22671 |
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okr-10986-226712021-04-23T14:04:10Z Are Large Firms Born or Made? : Evidence from Developing Countries Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav CORRELATIONS JOBS EMPLOYMENT RIGHTS MOTIVATION ECONOMIC GROWTH ACCOUNTING EMPLOYMENT SHARE POLITICS TIME INFORMAL SECTOR PREVIOUS SECTION RESEARCH WORKING PAPERS INCOME FIRM PRODUCTIVITY FIRM DYNAMICS PROPERTY RIGHTS INFORMATION ENTREPRENEURS POLITICAL ECONOMY COMPANIES JOB EFFECTS INCENTIVES LOAN FIRM SURVIVAL FIRM SIZE ASSOCIATIONS PRODUCTIVITY INCREASE MACHINERY SMALL BUSINESS EMPLOYMENT LEVEL TOTAL FACTOR PRODUCTIVITY FIRM EXIT DEVELOPMENT ECONOMICS TESTS FIRM LEVEL MANUFACTURING INDUSTRY PRODUCTIVITY CORPORATE FINANCE LABOR PRODUCTIVITY OBSERVATION FINANCIAL INSTITUTIONS BUSINESS SERVICES CAPITAL MARKET MARKETS FIRM ORGANIZATIONS LENDERS INDICATORS RESEARCH FIRM SIZE DISTRIBUTION LABOR ENTERPRISES LICENSING MORTALITY FINANCE SIZE OF FIRMS EFFICIENCY CORPORATE STRATEGY METHODS UNEMPLOYMENT EQUITY ENTREPRENEURIAL ABILITY DEVELOPMENT RESEARCH INVESTORS FIRMS WORKERS WAGES POLICIES SCIENCE OWNERSHIP STRUCTURE LISTED COMPANY AGE VALUE CREATIVE DESTRUCTION AGE GROUPS DOMINANT FIRM INCOME DISTRIBUTION PRIVATE FIRMS ENTERPRISE PRODUCTIVE FIRMS FIRM PERFORMANCE JOB CREATION SAMPLES SIZE MARKET ECONOMIC THEORY COMPANY SURVEYS ECONOMICS DIVERSIFICATION SURVEY INSTRUMENTS MANAGEMENT REGRESSION ANALYSIS SHAREHOLDERS MANUFACTURING INDUSTRIES HIGH-TECH INDUSTRIES THEORY ESTIMATING INVESTMENT RISK SAMPLING FINANCIAL MARKETS CONTRACTING BUSINESS ENVIRONMENT CORPORATE OWNERSHIP BANKING EMPLOYEE LABOR INTENSITY SURVEY DATA LAW LENDING ESTIMATES SMALL FIRMS PRODUCTIVITY DISPERSION MERGER FIRM GROWTH ENTREPRENEURSHIP METHODOLOGY OUTCOMES FIRM-LEVEL PRODUCTIVITY SEE EXOGENOUS VARIABLE CORPORATE ACQUISITIONS SIZE OF FIRM CREDIT LINES EMPLOYEES CORPORATE GOVERNANCE This paper uses survey data from 120 developing countries to compare the role of institutions with firm characteristics at the time of creation of the firm in explaining the size, growth, and productivity of firms over their lifecycle. The study finds that firm-level characteristics have comparable, and sometimes even larger, power than institutional factors in predicting size and growth, but not productivity. In particular, size at birth plays a key role in predicting variation in firm size and growth since birth over the firm lifecycle, whereas country factors dominate in predicting variation in labor productivity over the firm lifecycle. The study also finds that older firms are larger, partly because of the selection of more efficient firms. The findings point to the importance of initial founding conditions in explaining variations in size and growth over the firm lifecycle across countries. 2015-09-23T20:55:07Z 2015-09-23T20:55:07Z 2015-08 Working Paper http://documents.worldbank.org/curated/en/2015/08/24960357/large-firms-born-or-made-evidence-developing-countries http://hdl.handle.net/10986/22671 English en_US Policy Research Working Paper;No. 7406 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper |
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Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
CORRELATIONS JOBS EMPLOYMENT RIGHTS MOTIVATION ECONOMIC GROWTH ACCOUNTING EMPLOYMENT SHARE POLITICS TIME INFORMAL SECTOR PREVIOUS SECTION RESEARCH WORKING PAPERS INCOME FIRM PRODUCTIVITY FIRM DYNAMICS PROPERTY RIGHTS INFORMATION ENTREPRENEURS POLITICAL ECONOMY COMPANIES JOB EFFECTS INCENTIVES LOAN FIRM SURVIVAL FIRM SIZE ASSOCIATIONS PRODUCTIVITY INCREASE MACHINERY SMALL BUSINESS EMPLOYMENT LEVEL TOTAL FACTOR PRODUCTIVITY FIRM EXIT DEVELOPMENT ECONOMICS TESTS FIRM LEVEL MANUFACTURING INDUSTRY PRODUCTIVITY CORPORATE FINANCE LABOR PRODUCTIVITY OBSERVATION FINANCIAL INSTITUTIONS BUSINESS SERVICES CAPITAL MARKET MARKETS FIRM ORGANIZATIONS LENDERS INDICATORS RESEARCH FIRM SIZE DISTRIBUTION LABOR ENTERPRISES LICENSING MORTALITY FINANCE SIZE OF FIRMS EFFICIENCY CORPORATE STRATEGY METHODS UNEMPLOYMENT EQUITY ENTREPRENEURIAL ABILITY DEVELOPMENT RESEARCH INVESTORS FIRMS WORKERS WAGES POLICIES SCIENCE OWNERSHIP STRUCTURE LISTED COMPANY AGE VALUE CREATIVE DESTRUCTION AGE GROUPS DOMINANT FIRM INCOME DISTRIBUTION PRIVATE FIRMS ENTERPRISE PRODUCTIVE FIRMS FIRM PERFORMANCE JOB CREATION SAMPLES SIZE MARKET ECONOMIC THEORY COMPANY SURVEYS ECONOMICS DIVERSIFICATION SURVEY INSTRUMENTS MANAGEMENT REGRESSION ANALYSIS SHAREHOLDERS MANUFACTURING INDUSTRIES HIGH-TECH INDUSTRIES THEORY ESTIMATING INVESTMENT RISK SAMPLING FINANCIAL MARKETS CONTRACTING BUSINESS ENVIRONMENT CORPORATE OWNERSHIP BANKING EMPLOYEE LABOR INTENSITY SURVEY DATA LAW LENDING ESTIMATES SMALL FIRMS PRODUCTIVITY DISPERSION MERGER FIRM GROWTH ENTREPRENEURSHIP METHODOLOGY OUTCOMES FIRM-LEVEL PRODUCTIVITY SEE EXOGENOUS VARIABLE CORPORATE ACQUISITIONS SIZE OF FIRM CREDIT LINES EMPLOYEES CORPORATE GOVERNANCE |
| spellingShingle |
CORRELATIONS JOBS EMPLOYMENT RIGHTS MOTIVATION ECONOMIC GROWTH ACCOUNTING EMPLOYMENT SHARE POLITICS TIME INFORMAL SECTOR PREVIOUS SECTION RESEARCH WORKING PAPERS INCOME FIRM PRODUCTIVITY FIRM DYNAMICS PROPERTY RIGHTS INFORMATION ENTREPRENEURS POLITICAL ECONOMY COMPANIES JOB EFFECTS INCENTIVES LOAN FIRM SURVIVAL FIRM SIZE ASSOCIATIONS PRODUCTIVITY INCREASE MACHINERY SMALL BUSINESS EMPLOYMENT LEVEL TOTAL FACTOR PRODUCTIVITY FIRM EXIT DEVELOPMENT ECONOMICS TESTS FIRM LEVEL MANUFACTURING INDUSTRY PRODUCTIVITY CORPORATE FINANCE LABOR PRODUCTIVITY OBSERVATION FINANCIAL INSTITUTIONS BUSINESS SERVICES CAPITAL MARKET MARKETS FIRM ORGANIZATIONS LENDERS INDICATORS RESEARCH FIRM SIZE DISTRIBUTION LABOR ENTERPRISES LICENSING MORTALITY FINANCE SIZE OF FIRMS EFFICIENCY CORPORATE STRATEGY METHODS UNEMPLOYMENT EQUITY ENTREPRENEURIAL ABILITY DEVELOPMENT RESEARCH INVESTORS FIRMS WORKERS WAGES POLICIES SCIENCE OWNERSHIP STRUCTURE LISTED COMPANY AGE VALUE CREATIVE DESTRUCTION AGE GROUPS DOMINANT FIRM INCOME DISTRIBUTION PRIVATE FIRMS ENTERPRISE PRODUCTIVE FIRMS FIRM PERFORMANCE JOB CREATION SAMPLES SIZE MARKET ECONOMIC THEORY COMPANY SURVEYS ECONOMICS DIVERSIFICATION SURVEY INSTRUMENTS MANAGEMENT REGRESSION ANALYSIS SHAREHOLDERS MANUFACTURING INDUSTRIES HIGH-TECH INDUSTRIES THEORY ESTIMATING INVESTMENT RISK SAMPLING FINANCIAL MARKETS CONTRACTING BUSINESS ENVIRONMENT CORPORATE OWNERSHIP BANKING EMPLOYEE LABOR INTENSITY SURVEY DATA LAW LENDING ESTIMATES SMALL FIRMS PRODUCTIVITY DISPERSION MERGER FIRM GROWTH ENTREPRENEURSHIP METHODOLOGY OUTCOMES FIRM-LEVEL PRODUCTIVITY SEE EXOGENOUS VARIABLE CORPORATE ACQUISITIONS SIZE OF FIRM CREDIT LINES EMPLOYEES CORPORATE GOVERNANCE Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav Are Large Firms Born or Made? : Evidence from Developing Countries |
| relation |
Policy Research Working Paper;No. 7406 |
| description |
This paper uses survey data from 120
developing countries to compare the role of institutions
with firm characteristics at the time of creation of the
firm in explaining the size, growth, and productivity of
firms over their lifecycle. The study finds that firm-level
characteristics have comparable, and sometimes even larger,
power than institutional factors in predicting size and
growth, but not productivity. In particular, size at birth
plays a key role in predicting variation in firm size and
growth since birth over the firm lifecycle, whereas country
factors dominate in predicting variation in labor
productivity over the firm lifecycle. The study also finds
that older firms are larger, partly because of the selection
of more efficient firms. The findings point to the
importance of initial founding conditions in explaining
variations in size and growth over the firm lifecycle across countries. |
| format |
Working Paper |
| author |
Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav |
| author_facet |
Ayyagari, Meghana Demirguc-Kunt, Asli Maksimovic, Vojislav |
| author_sort |
Ayyagari, Meghana |
| title |
Are Large Firms Born or Made? : Evidence from Developing Countries |
| title_short |
Are Large Firms Born or Made? : Evidence from Developing Countries |
| title_full |
Are Large Firms Born or Made? : Evidence from Developing Countries |
| title_fullStr |
Are Large Firms Born or Made? : Evidence from Developing Countries |
| title_full_unstemmed |
Are Large Firms Born or Made? : Evidence from Developing Countries |
| title_sort |
are large firms born or made? : evidence from developing countries |
| publisher |
World Bank, Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2015/08/24960357/large-firms-born-or-made-evidence-developing-countries http://hdl.handle.net/10986/22671 |
| _version_ |
1764451727221719040 |