Growth firms and economic growth: an empirical analysis of the dynamics of employment and productivity in growth companies

Abstract

The study evaluates the immediate contribution of Finnish growth firms to economic growth during the period 2008–2011 by examining employment and productivity effects in an integrated framework. The analysis compares the firm dynamics of growth companies with those of other firms in terms of both employment and productivity developments.

Firm dynamics include the creation of new jobs, the destruction of old ones, productivity growth within firms, and structural changes in firms and employment that enhance overall productivity in the economy. The analysis is complemented by an examination of the subsequent contribution of growth firms over the following three-year period.

The results indicate that a relatively small number of growth firms account for a significant share of overall economic growth, although this impact is associated with distinctive patterns of firm dynamics. (AI translation)

Publication Information

Maliranta, M., & Hurri, P. (2017), Kasvuyritykset ja talouskasvu: empiirinen analyysi kasvuyritysten työllisyyden ja tuottavuuden dynamiikasta, Kansantaloudellinen aikakauskirja, 113(1), 7–21.

• ISSN: 0022-8427