Are High-Growth Firms One-Hit Wonders?: Evidence from Sweden
2015 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 44, no 2, 361-383 p.Article in journal (Refereed) Published
Most firms do not grow, and a small number of high-growth firms seem to create most new jobs. These firms have therefore received increasing attention among policymakers. The question is whether high-growth tends to persist? We investigate this question using data on 432,689 observa-ions in Sweden during 1998-2008. We find that high-growth firms had declining growth rates in the previous 3-year period, and their probability of repeating high growth rates was very low. HGFs are essentially one-hit wonders, and it is thus doubtful whether policymakers can improve economic outcomes by targeting them.
Place, publisher, year, edition, pages
2015. Vol. 44, no 2, 361-383 p.
Gazelles, High-growth firms, Growth persistence, Autocorrelation, Transition probabilities
Economics and Business
IdentifiersURN: urn:nbn:se:kth:diva-118330DOI: 10.1007/s11187-014-9599-8ISI: 000348929300008OAI: oai:DiVA.org:kth-118330DiVA: diva2:605656
QC 20130215. QC 20140312. Updated from manuscript to article in journal.2013-02-142013-02-142015-03-12Bibliographically approved