High Growth Firms in Employment and Productivity: Dynamic Interactions and the Role of Financial Constraints?

72 Pages Posted: 13 May 2017

See all articles by Cristina Guillamón

Cristina Guillamón

Banco de España

Enrique Moral-Benito

Banco de España; Universidad Carlos III de Madrid

Sergio Puente

Banco de España

Date Written: May 12, 2017

Abstract

Using a panel of Spanish firms over the period 2002-2012, we investigate the interactions between high growth episodes in terms of size and productivity. We find that high growth in productivity (size) increases the likelihood of high growth in size (productivity). However, the effect from size to productivity is smaller than the effect from productivity to size. We also explore the potential role of firm-level financial constraints using information from the Central Credit Register (CIR) of Banco de España. Our results indicate that credit constraints hamper high growth episodes in terms of both size and productivity.

Keywords: high-growth firms, high-impact firms, productivity, panel firm-level data

JEL Classification: L25, L11, D24, C23

Suggested Citation

Guillamón, Cristina and Moral-Benito, Enrique and Puente, Sergio, High Growth Firms in Employment and Productivity: Dynamic Interactions and the Role of Financial Constraints? (May 12, 2017). Banco de Espana Working Paper No. 1718. Available at SSRN: https://ssrn.com/abstract=2967223 or http://dx.doi.org/10.2139/ssrn.2967223

Cristina Guillamón (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Enrique Moral-Benito

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Universidad Carlos III de Madrid ( email )

CL. de Madrid 126
Madrid, Madrid 28903
Spain

Sergio Puente

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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