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When is Gibrat's law a law?
Dalarna University, School of Technology and Business Studies, Economics.
Dalarna University, School of Technology and Business Studies, Economics.
2012 (English)In: Small Business Economics, ISSN 0921-898X, E-ISSN 1573-0913, Vol. 41, no 1, p. 133-147Article in journal (Refereed) Published
Abstract [en]

The purpose of this article is to investigate if the industry context matters for whether Gibrat’s law is rejected or not using a dataset that consists of all limited firms in five-digit NACE-industries in Sweden during 1998–2004. The results reject Gibrat’s law on an aggregate level, since small firms grow faster than large firms. However, Gibrat’s law is confirmed about as often as it is rejected when industry-specific regressions are estimated. It is also found that the industry context—e.g., minimum efficient scale, market concentration rate, and number of young firms in the industry—matters for whether Gibrat’s law is rejected or not.

Place, publisher, year, edition, pages
Dordrecht: Kluwer , 2012. Vol. 41, no 1, p. 133-147
Keywords [en]
Firm growth, firm size, job creation, small firms
National Category
Economics
Research subject
Complex Systems – Microdata Analysis, General Microdata Analysis - others
Identifiers
URN: urn:nbn:se:du-5991DOI: 10.1007/s11187-011-9404-xISI: 000319774900008Scopus ID: 2-s2.0-84878588882OAI: oai:dalea.du.se:5991DiVA, id: diva2:520469
Available from: 2011-10-04 Created: 2011-10-04 Last updated: 2021-11-12Bibliographically approved

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CiteExportLink to record
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  • apa
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  • Other style
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  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
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  • asciidoc
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