In developing economies, small firms dominate the labour market, but they are generally less productive, less likely to grow and more likely to fail. Larger, more persistent and productive firms are essential to support growth and structural transformation. To understand how large firms emerge and grow, this research project analysed firm-level data from Nigeria. The findings suggest that older firms
tend to exhibit higher growth rates over time, especially when co-located with an export processing zone. This finding highlights the importance of policies that promote firm survival. Such policies could be an effective means of supporting long-term growth and industrial development.
STEG Project Policy Brief
• Research Theme 0: Data, Measurement, and Conceptual Framing,
Research Theme 1: Firms, Frictions and Spillovers, and Industrial Policy,
Cross-Cutting Issue 1: Gender
Origins of the Mammoth: Emergence and Evolution of Large High-Growth Firms in Nigeria
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