@article{Gomis:294963,
      recid = {294963},
      author = {Gomis, Roger M. and Khatiwada, Sameer},
      title = {Firm dynamics and business cycle what doesn't kill you  makes you stronger?},
      publisher = {The Graduate Institute, International Economics  Department},
      address = {Geneva. 2017},
      number = {BOOK},
      series = {Graduate Institute of International and Development  Studies Working Paper ; no. 03/2017},
      pages = {33 p. : ill.},
      year = {2017},
      abstract = {This paper analyses the impact of recessions and booms on  firm performance. We look at 70,000 firms in over 100  countries between 1986 and 2014 and document the trends in  firm entry over the business cycle. Our paper confirms some  standard facts about firm dynamics: employment growth is  decreasing with size and age; entry rate is pro-cyclical  while the exit rate is countercyclical. For example, in  case of advanced economies, 97 per cent of employment  creation is by firms between the ages of 0 and 5 years,  while for developing and emerging economies, it is 86 per  cent of all employment. Our main results are: first, we do  see selection effects of recessions, particularly when we  look at employment, sales and capital. Specifically, when a  firm enters the market during good times, they tend to have  lower employment and capital than firms that enter the  market during bad times. Second, when we look at total  factor productivity (TFP), we don’t see a clear "cleansing  effect" of recessions – more productive firms entering the  market while less productive leaving. Third, the effects of  entering during a boom or a recession tend to persist for a  long time, over 15 years. Fourth, we find notable  differences between income groups – while recessions tend  to create stronger firms in the advanced economies, booms  tend to create stronger ones in case of the emerging  economies. Lastly, the effects of recessions on firms tend  to vary by sector.},
      url = {http://repository.graduateinstitute.ch/record/294963},
      doi = {https://doi.org/10.71609/iheid-1pk2-tn82},
}