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Cited by 176

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The Small, the Young, and the Productive: Determinants of Manufacturing Firm Growth in Ethiopia

Bigsten, Arne, Gebreeyesus, Mulu·2007·Economic Development and Cultural Change

Abstract

This study examines the relationships between firm growth and firm size, age, and labor productivity, using annual census–based panel data on Ethiopian manufacturing firms. The study explicitly addresses the ongoing statistical concerns in firm growth models such as sample censoring, regression to the mean, and unobserved heterogeneity. Our empirical results indicate that firm growth decreases with size. Smaller firms have faster rates of growth than larger firms, even after compensating for their higher attrition rates. The negative relation between age and growth predicted by the learning model is found to apply only to younger firms. Labor productivity affects firm growth positively, which indicates that there is a market selection process at work during the period of economic reforms in Ethiopia.

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Metadata

Authors
Bigsten, A., & Gebreeyesus, M.
Venue
Economic Development and Cultural Change
Published
2007-07
Volume
55
Issue
4
Pages
813-840
ISSN
  • 0013-0079 (ISSN-L)
  • 1539-2988
OpenAlex
W2078981186
Cited by
176
References
1
FWCI
10.67
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: The Small, the Young, and the Productive: Determinants of Manufacturing Firm Growth in Ethiopia. https://app.cochat.ai/papers/10.1086/516767
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Bigsten, A., & Gebreeyesus, M. (2007). The Small, the Young, and the Productive: Determinants of Manufacturing Firm Growth in Ethiopia. Economic Development and Cultural Change. https://doi.org/10.1086/516767

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Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).

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