a stimulus for productivity growth of local firms in the same region. … or sector, it is their productivity advantage on the local firm to determine the positive effect on domestic productivity … growth.We test this hypothesis using firm level data for German and Italian company for the 90''s. and we find evidence of a …

productivity and to overcome certain market frictions. Our model generates a number of theoretical testable predictions and … highlights a new interaction between static gains and dynamic losses from rent-seeking in aggregate productivity. We test the …. In addition, political connections relate to a higher rate of survival, as well as growth in employment and revenue, but …

productivity. …

% points higher annual productivity growth, and a 3.6% points higher probability of exit for firms with binding employment …: distorted employment decisions, increased productivity, and higher exit rates. Our empirical analysis, using a novel dataset and … instrumental variable approach, confirms these findings. We estimate a 22% points higher annual employment growth rate, a 14 …