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Which firms survive in a crisis? Investigating Gibrat’s Law in Greece 2001–2014

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  • Christos Axioglou

    (Hellenic Fiscal Council, and University of West Attica)

  • Nicos Christodoulakis

    (Athens University of Economics & Business, and Hellenic Observatory at LSE, London)

Abstract

The paper employs a panel dataset of more than 40,000 Greek firms over the period 2001–2014 to examine the size-related patterns of survival and turnover growth before and after the financial and debt crisis that hit Greece in 2010. Our findings suggest that larger-size firms were, in general, more likely to survive in the market than smaller size ones and this relative advantage only grew further during the crisis. However, the rate of growth in turnover for the surviving firms is negatively associated with their size, thus refuting Gibrat’s Law in Greece.

Suggested Citation

  • Christos Axioglou & Nicos Christodoulakis, 2021. "Which firms survive in a crisis? Investigating Gibrat’s Law in Greece 2001–2014," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 48(2), pages 159-217, June.
    • Handle: RePEc:spr:epolin:v:48:y:2021:i:2:d:10.1007_s40812-020-00176-5
    DOI: 10.1007/s40812-020-00176-5
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    Keywords

    Industrial organization; Market share; Manufacturing sector; Crisis;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation

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