Procuring Firm Growth : The Effects of Government Purchases on Firm Dynamics ∗

@inproceedings{Ferraz2014ProcuringFG,
  title={Procuring Firm Growth : The Effects of Government Purchases on Firm Dynamics ∗},
  author={Cl{\'a}udio Ananias Ferraz and PUC-Rio Frederico Finan},
  year={2014}
}
Firms in the developing world exhibit much flatter life-cycle dynamics compared to firms in developed countries. This paper examines the role of demand constraints in limiting the growth of small and medium firms in Brazil. We test whether firms that win government procurement contracts grow more compared to firms that compete for these contracts but do not win. We assemble a comprehensive data set combining matched employer-employee data for the universe of formal firms in Brazil with the… CONTINUE READING

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