BIG BUSINESS, DYNAMICS AND ECONOMIC-GROWT H - LARGE-SCALE INDUSTRIAL FIRMS IN DENMARK, FINLAND, NORWAY AND SWEDEN

A dynamic business sector is an important factor for economic growth. The authors of this article compare large industrial firms in the Nord ic countries in the period 1975-1990s. They study the firm structures in the separate countries and the growth and development of large-scal e firms. The article also deals with the role of large firms in econom ic growth and structural change. The authors find similarities but als o remarkable differences between the Nordic countries. For example Swe den can boast with by far the largest firms. On the other hand, in Fin land the thirty largest firms have a very dominating position as they constitute about 50% of total employment in the industrial sector. The authors conclude that large-scale firms has a great impact on economi c growth - probably greater than their share in the economy. They put more effort on research and development, on innovations and contribute to technological diffusion. Thus, they can have remarkable positive e xternalities. However, they can have some negative impacts as well, by having too dominating a position on the market.