The purpose of this dissertation is to examine the role of firms'scale and its effect on the economic growth. It also discusses whether a country with more large-scale enterprises has a higher economic growth rate than a country with fewer large-scale enterprises by the theoretical aspect and empirical data, and investigates whether the ratio of large enterprises could cause multiple convergence paths that make countries converge to different way.

Meanwhile, the author investigates the process of a small firm transformed into a large one and whether it will bring more external effects to other manufacturers. Finally, the author uses empirical date of Taiwan to prove which factors could affect the transformation of a small firm to a large firm.