Impediments to the Schumpeterian Process in the Replacement of Large Firms

• 成果类型: Article; Early Access
• 署名作者: Faccio, Mara; McConnell, John J.
• 署名单位: Purdue University System; Purdue University; National Bureau of Economic Research; Purdue University System; Purdue University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.13481
• 发表日期: 2025
• 关键词: political connections; business groups; PRODUCTIVITY; INNOVATION; GROWTH; POWER

摘要

We use newly assembled data overall encompassing up to 75 countries and starting circa 1910, to study impediments to the Schumpeterian process of creative destruction as it proceeds by competitively destroying old businesses. Political connections appear to represent an obstacle to the destructive part of the Schumpeterian process in the replacement of large firms. When accompanied by regulations that restrict entry, political connections can play a role in allowing large firms to remain large. When connected to Fogel, Morck, and Yeung (2008, Journal of Financial Economics 89, 83-108), the results imply that political connections, combined with barriers to entry, can retard economic development.