Hassen Arouri, Caroline Freund, Antonio Nucifora, Bob Rijkers, 03 July 2015

If more firms are established in developing countries, more jobs are created. But which type of firm creates the most jobs? This column presents evidence from Tunisia suggesting that once you’re established as a new and promising firm, it’s harder than it should be to grow and create jobs. Weak firm dynamics and imperfections in the market prevent the best firms from flourishing.

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