Linking Size and Productivity of High-Growth Firms

Abstract

Since the beginning of the XXI century, several factors, largely triggered by the global financial crisis, have led to a drop of the aggregate productivity of the Portuguese economy. Despite the evidence that High-Growth Firms (HGFs) contribute significantly to economic growth, empirical literature falls short on exploring the link between HGFs and productivity in Portugal. Using panel data form SABI and Quadros do Pessoal, this paper investigates the link between HGFS’ output growth [size] and productivity growth, across sectors and regions. The sample comprises 432 large firms, for 2015-2019, of which 16 are HGFs. Results confirm the link between size and productivity growth, but in what concerns HGFs this link only occurs in firms located in The Metropolitan Are of Lisbon operating in Publishing activities.