Firm size and development

Hopenhayn, Hugo A. (2016) Firm size and development. Economía, 17 (1). 27 - 49. ISSN 1529-7470

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Abstract

Firm size increases with GDP per capita. The paper develops a simple framework to explore three alternative sources of variation that may explain this correlation: (1) excessive entry; (2) differences in the distribution of firm productivities; and (3) differences in returns to scale. The results show that all these sources of variation lead to substantial differences in firm size. GDP per capita is also significantly affected, but by an order of magnitude less. JEL classifications: O11, E13

Item Type:	Article
Official URL:	https://economia.lse.ac.uk/
Additional Information:	© 2016 LACTEA
Divisions:	LSE
Subjects:	H Social Sciences > HC Economic History and Conditions
JEL classification:	E - Macroeconomics and Monetary Economics > E1 - General Aggregative Models > E13 - Neoclassical O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development
Date Deposited:	09 Jul 2024 15:24
Last Modified:	14 Sep 2024 10:00
URI:	http://eprints.lse.ac.uk/id/eprint/123074

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