Size and Age of Establishments : Evidence from Developing Countries

Ayyagari, Meghana ; Demirguc-Kunt, Asli ; Maksimovic, Vojislav

World Bank, Washington, DC

关键词: ACCOUNTING;    AGE GROUP;    AGE GROUPS;    BANK BRANCHES;    BANKING REFORM;   

DOI  :  10.1596/1813-9450-6718
RP-ID  :  WPS6718

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Survey data from 120 developingcountries are used to examine the relation betweenestablishment size and age in the formal sector. Existingresearch suggests that manufacturing establishments indeveloping countries do not grow over time, most likelybecause of market imperfections and regulations. To thecontrary, this paper finds that the average plant indeveloping countries that is more than 40 years old employsalmost five times as many workers as the average plant thatis five years old or younger. The analysis finds consistentevidence when it looks within a large country, India, basedon detailed manufacturing census data over 23 years. It alsofinds that differences in financial development acrossIndian states, while substantial, have a minor effect onfirm growth, consistent with inefficiency of state-ownedfinancial systems. These results hold controlling fordifferences in labor regulations across states, capitalintensity, labor regulations, and firms born before andafter the major reforms.