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Gazelles and industry growth: a study of young high-growth firms in The Netherlands

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  • Jaap W. B. Bos
  • Erik Stam

Abstract

This article examines to what extent and how the presence of gazelles, young high-impact firms, is related to the growth of industries over time. For this purpose, we analyze gazelles in The Netherlands over a 12-year period, annually from 1997 until 2008, and relate them to the dynamics of industry employment. We use a panel vector autoregressive model to explore the relationship between the prevalence of gazelles in an industry and industry employment growth, in an economy-wide dataset including 43 two-digit industries. An increase in the prevalence of gazelles in an industry appears to have a positive effect on subsequent industry growth. We do not find evidence of an inverse causal relationship: there are no long-run positive effects of increases in industry growth on the prevalence of gazelles. There is also no relationship between overrepresentation of gazelles and subsequent industry growth. Copyright 2014 The Author 2013. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.

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  • Jaap W. B. Bos & Erik Stam, 2014. "Gazelles and industry growth: a study of young high-growth firms in The Netherlands," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 23(1), pages 145-169, February.
    • Handle: RePEc:oup:indcch:v:23:y:2014:i:1:p:145-169
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