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Big Business Stability and Economic Growth: Is What's Good for General Motors Good for America? / Kathy Fogel, Randall Morck, Bernard Yeung.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Fogel, Kathy.
Contributor:
National Bureau of Economic Research.
Morck, Randall.
Yeung, Bernard.
Series:
Working Paper Series (National Bureau of Economic Research) no. w12394.
NBER working paper series no. w12394
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Big Business Stability and Economic Growth
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2006.
Summary:
What is good for big business need not generally advance a country's overall economy. Big business turnover correlates with rising income, productivity, and (in high income countries) faster capital accumulation; consistent with Schumpeter's (1912) creative destruction and recent formalizations like Aghion and Howitt (1992). Turnover appears to "cause" growth; and disappearing behemoths, more than rising stars, drive our results. Stronger findings suggest more intense creative destruction in countries with higher incomes, as well as those with smaller governments, Common Law courts, smaller banking systems, stronger shareholder rights, and more open economies. Only the last matters more in lower income countries.
Notes:
Print version record
July 2006.

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