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Using “average" indicators is simply misleading in most occasions, and firm-level analysis allows a much more targeted set of policies. Firm-level analysis is an essential tool to complement and integrate the macro assessment and related policy response across the whole range of productivity drivers – from labour to trade, from finance to competition. The great advantage of the CompNet dataset is that is built in such a fashion to be able to be used – as it is and directly – to derive at the very least a first set of granular stylised facts to inform policy considerations. Users can use the dataset to assess competitiveness, financial constraints and sensitivity to exchange rate fluctuations. The book has also presented a wide variety of applications of firm-level-based analysis which goes over and above the mere presentation of stylised facts and joint distributions coming directly out of the dataset, including zombie firms impacts, export and participation in global value chains and concentration and market power.
Productivity and growth are affected by the financial environment as a whole. This environment is a combination of firms' financial conditions (the demand side), and a country's quality of financing institutions (the supply side). A malfunctioning financial environment reduces the chance that growing companies can access the external financial resources they need to undertake productive investment. Stagnating productivity growth follows, creating low aggregate economic growth. Firms in countries that underwent serious financial distress due to the financial crisis have persistently suffered from its consequences. The situation led to a piling up of debts, a contraction of investments and a strong decrease in firms' profitability. This process also led (and is partially due) to an increase in the number of low-productivity zombie firms in periphery countries after the financial crisis.
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