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Subject

Decline of Business Growth Dynamism
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기업성장의 동태성 하락

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Type
Academic journal
Author
Journal
한국응용경제학회 응용경제 응용경제 제21권 제4호 KCI Accredited Journals
Published
2019.1
Pages
5 - 44 (40page)

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Decline of Business Growth Dynamism
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This paper documents the decline of business growth dynamism in Korea. Using the Establishments Census from 2000 to 2014, it finds that job creation and destruction rates have declined since the mid-2000s although the net job creation rate has not fallen. Dynamism has been reduced in the private corporate sector more than in the sole proprietor sector, by the decline of new entries since the mid-2000s after the mushrooming of start-ups in the early 2000s. Older firms are generally less active in job creation than younger ones, and as firms grow older with less entries, Korea’s business dynamism is declining.

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