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Identifiers

doi
10.1787/573033480640

Business Dynamics, Regulation and Performance

Business Dynamics, Regulation and Performance

Flag for IGO OECD on March 17th 2004
Nicola Brandt
Building on an earlier study of patterns on firm entry, exit growth and survival based on new data from Eurostat covering nine European Union member countries (Brandt, 2004), this paper takes a closer look at the role of policies and institutions for firm entry and survival and at the link between new firm creation and economic performance. The earlier study revealed that firm entry rates, i.e. the number of new firms in a market in relation to all active enterprises, were particularly high in Information and Communication (ICT) related industries in recent years. This lends some support to the idea present in some theories of economic growth that new firms are important for the development and implementation of new technologies. This paper takes a closer look at the relationship between firm entry and economic performance. Results reveals that high rates of firm entry tend to coincide with rapid productivity, output and employment growth, especially in the ICT related services ...

Topics in this document

Related SDGs

SDG 8: Decent Work and Economic Growth ...
SDG 8: Decent Work and Economic Growth

Target 8.2

Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors

Target 8.3

Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services

Citations

Cited by 45 other policy documents (19 of them are from other policy sources)
 

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E. Duflo at Massachusetts Institute of Technology
On page 29