TY  - RPRT
A1  - Amoroso, Sara
A1  - Herrmann, Benedikt
A1  - Kritikos, Alexander
T1  - The Role of Regulation and Regional Government Quality for High Growth Firms
BT  - The Good, the Bad, and the Ugly
T2  - CEPA Discussion Papers
N2  - High growth firms (HGFs) are important for job creation and considered to be precursors of economic growth. We investigate how formal institutions, like product- and labor-market regulations, as well as the quality of regional governments that implement these regulations, affect HGF development across European regions. Using data from Eurostat, OECD, WEF, and Gothenburg University, we show that both regulatory stringency and the quality of the regional government influence the regional shares of HGFs. More importantly, we find that the effect of labor- and product-market regulations ultimately depends on the quality of regional governments: in regions with high quality of government, the share of HGFs is neither affected by the level of product market regulation, nor by more or less flexibility in hiring and firing practices. Our findings contribute to the debate on the effects of regulations by showing that regulations are not, per se, “good, bad, and ugly”, rather their impact depends on the efficiency of regional governments. Our paper offers important building blocks to develop tailored policy measures that may influence the development of HGFs in a region.
T3  - CEPA Discussion Papers - 71 
KW  - High growth firms
KW  - Regulation
KW  - Quality of regional governments
KW  - Regions
Y1  - 2023
U6  - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-612771
SN  - 2628-653X
IS  - 71
ER  -