Is it the institutions or firm characteristics at birth that shape startups and their early growth in developing countries? Using comprehensive data from the Indian Annual Survey of Industries this paper addresses this question by studying the early lifecycle of firms across diverse...

Survey data from 120 developing countries are used to examine the relation between establishment size and age in the formal sector. Existing research suggests that manufacturing establishments in developing countries do not grow over time, most likely because of market imperfections and...

Market imperfections, such as those caused by underdeveloped financial and legal systems, are usually considered constraints on a firm's ability to obtain capital.A past study has shown that firms in countries with developed financial institutions and efficient legal systems obtain capital more...