Why do gazelles grow? An analysis of the high-growth business environment in the Euro area
Francisco del Olmo-García, Fernando Javier Crecente-Romero, María Sarabia-Alegría, María Teresa del Val-Núñez
Keywords:
high-growth firms, Euro area, economic factors, institutions
Abstract:
High-growth companies (also called gazelles) are an increasing part of the European business
fabric, especially after the Great Recession of 2007-09. They are creating new jobs and
improving the competitiveness of Euro area countries. This paper documents the economic and
institutional factors that have led this business segment to grow in importance. Using a panel
of data for the Euro area member countries from 2014 to 2020, we estimate which factors are
related to the evolution of high-growth firms. The results highlight the importance of economic
growth, the weight of bank credit in the economy, labor flexibility, freedom of investment and
the development of more creative and innovative products. The growth of this business segment
does not seem to be influenced by other factors such as institutions, property rights and the
quality of infrastructure. The conclusions drawn from this work can contribute to the
development and implementation of public policies aimed at fostering business growth.
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 Why do gazelles grow? An analysis of the high-growth business environment in the Euro area [PDF file] [Filesize: 473.36 KB]
 10.7441/joc.2023.04.06
del Olmo-García, F., Crecente-Romero, F.J., Sarabia-Alegría, M., & del Val-Núñez, M.T. (2023). Why do gazelles grow? An analysis of the high-growth business environment in the Euro area. Journal of Competitiveness, 15(4), 87-111 https://doi.org/10.7441/joc.2023.04.06
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