Review of Industrial Organization

, Volume 17, Issue 3, pp 229–248

Theories of Firms' Growth and the Generation of Jobs

  • P. E. Hart

DOI: 10.1023/A:1007887626165

Cite this article as:
Hart, P.E. Review of Industrial Organization (2000) 17: 229. doi:10.1023/A:1007887626165


This paper relates recent empiricalresearch on the growth of U.K. companies to the maineconomic theories of firms' growth and to empiricalresults for the U.S.A. Smaller and younger firms havebeen growing more quickly than larger and older firms, thus generating proportionately more new jobs. Theseresults do not support the various theories of staticand dynamic economies of scale. Serial correlation ofgrowth is very low, so success does not persist. Thesystematic tendency for small and younger firms togrow more quickly is the main reason why firm growthis not entirely stochastic.

Age firms' growth jobs size 

Copyright information

© Kluwer Academic Publishers 2000

Authors and Affiliations

  • P. E. Hart
    • 1
  1. 1.Faculty of Letters & Social SciencesDepartment of EconomicsWhiteknights, ReadingU.K.

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