Firm growth and performance over time
Firm growth and performance over time
RESEARCH QUESTION
How do aspects like firm efficiency and access to export markets affect whether or not firms succeed? How do these factors affect firm size and firm structure? Do large firms start small and grow or are they large when they form and, if so, what explain this pattern? What are the conditions under which firms interact with each other and how does this behaviour change with firm size and age? The way these factors underlie patterns of firm growth are central to understanding how future policies could influence the evolution of firm structure. We are also looking at the dominance of small scale enterprises, and asking How does the size of enterprises change and why? And how does this impact on poverty outcomes? Understanding how enterprises scale up their activity and grow bigger is a key part of understanding the mechanisms of how poor people can gain access to higher income opportunities. Ghana is an important context for studying these issues as there has recently been a substantial increase in the proportion of small firms in the manufacturing sector, and there is excellent data available over a sustained time period.
PROJECT
This project relies on a combination of firm panel surveys and a field experiment. We intend to revisit Ghanaian manufacturing firms that have previously been surveyed, in order to identify the determinants of recent firm growth. We have two datasets of Ghanaian firms: an industrial census (conducted in both 1987 and 2003) and a panel of manufacturing firms (which currently ends in 2003). We intend to revisit about 180 firms from the manufacturing panel, to conduct firm-level interviews with management and workers, and to revisit a large sample of firms from the 2003 census to collect information about a larger group of firms, asking information about (i) whether the firm is still operating and (ii) how employment has changed. This approach will allow us to establish a decade-long profile of how Ghanaian firms have developed. Particular focus will be put on how firms learn to interact with each other in the marketplace and how this correlates to firm performance. In addition, we will run an experiment, where firm managers will be monitored in a virtual marketplace, to complement the information gathered in the surveys.
RESEARCHERS
OUTPUT
When No Bad Deed Goes Punished: A Relational Contracting Experiment in Ghana
When No Bad Deed Goes Punished: A Relational Contracting Experiment in Ghana
Dataset: When No Bad Deed Goes Punished: A Relational Contracting Experiment in Ghana