Are high-growth firms one-hit wonders? Evidence from Sweden

  • Daunfeldt S
  • Halvarsson D
  • 84


    Mendeley users who have this article in their library.
  • 26


    Citations of this article.


Most firms do not grow, and a small number of high-growth firms seem to create most new jobs. These firms have therefore received increasing attention among policymakers. The question is whether high-growth tends to persist? We investigate this question using firm-level data from Sweden during 1997–2008. We find that high-growth firms had declining growth rates in the previous 3-year period, and their probability of repeating high growth rates was very low. Thus, these are essentially ''one-hit wonders,'' and it is doubtful whether policymakers can improve economic outcomes by targeting them.

Author-supplied keywords

  • Autocorrelation
  • Gazelles
  • Growth persistence
  • High-growth firms
  • Transition probabilities

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document


Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free