from the St Louis Fed
In developed countries, where firms face a lot of competition, creative destruction from significant business competition weeds out weaker firms and allows stronger firms to grow rapidly. However, this doesn’t seem to occur in developing nations.
Ufuk Akcigit, an assistant economics professor at the University of Chicago, examined this phenomenon in his paper “Lack of Selection and Limits to Delegation: Firm Dynamics in Developing Countries,” presented at the St. Louis Advances in Research (STLAR) Conference on April 7-8. In the video above, he discussed his work in an interview with St. Louis Fed Vice President and Economist David Andolfatto.
Additional Resources
Connecting Policy with Frontier Research: Lack of Selection and Limits to Delegation: Firm Dynamics in Developing Countries
On the Economy: China’s Currency and Net International Income Flow
On the Economy: Are Emerging Economies Becoming More Resilient?
Source
https://www.stlouisfed.org/on-the-economy/2016/september/firms-developing-nations-dont-grow-fast
Disclaimer
Views expressed are not necessarily those of the Federal Reserve Bank of St. Louis or of the Federal Reserve System.
