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Why Firms in Developing Nations Don't Grow as Fast
September 13, 2016

In developed countries, where firms face a lot of competition, creative destruction from significant business
competition weeds out weaker firms and allows stronger firms to grow rapidly. However, this doesn’t seem to
occur in developing nations.
Ufuk Akcigit, an assistant economics professor at the University of Chicago, examined this phenomenon in his
paper “Lack of Selection and Limits to Delegation: Firm Dynamics in Developing Countries,” presented at the
St. Louis Advances in Research (STLAR) Conference on April 7-8. In the video above, he discussed his work
in an interview with St. Louis Fed Vice President and Economist David Andolfatto.

Additional Resources
• Connecting Policy with Frontier Research: Lack of Selection and Limits to Delegation: Firm Dynamics
in Developing Countries
• On the Economy: China’s Currency and Net International Income Flow

• On the Economy: Are Emerging Economies Becoming More Resilient?