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Are high-growth firms one-hit wonders? Evidence from Sweden
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Journal Article
Are high-growth firms one-hit wonders? Evidence from Sweden
2015
Overview
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 firm-level data from Sweden during 1997-2008. 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. Thus, these are essentially \"onehit wonders,\" and it is doubtful whether policymakers can improve economic outcomes by targeting them.
Publisher
Springer,Springer US,Springer Nature B.V
