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High growth firms and trade linkages: Imports do matter

Author

Listed:
  • Marcio Cruz

    (The World Bank
    Federal University of Paraná)

  • Leila Baghdadi

    (Université de Tunis, Ecole Supérieure des Sciences Economiques et Commerciales de Tunis)

  • Hassen Arouri

    (National Centre of Statistics and Information)

Abstract

This paper examines the association between high-growth firm status and global linkages with special focus on the role of imports. We rely on a rich panel data covering all formal firms in Tunisia between 1999 and 2015. Our results show that firms that import, export, have foreigner ownership, or benefit from offshore regimes are more likely to achieve high-growth status compared to other similar firms in terms of size, age, sector, and region. Among these channels, importing status has a robust positive association with high growth. We find that an increase in the import barriers led by changes in non-tariff measures reduces the likelihood of achieving high-growth status through import channel for firms that are in sectors facing relatively higher levels of exposure to the shock.

Suggested Citation

  • Marcio Cruz & Leila Baghdadi & Hassen Arouri, 2022. "High growth firms and trade linkages: Imports do matter," Small Business Economics, Springer, vol. 59(1), pages 79-92, June.
    • Handle: RePEc:kap:sbusec:v:59:y:2022:i:1:d:10.1007_s11187-021-00538-w
    DOI: 10.1007/s11187-021-00538-w
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