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Testing Gibrat’s Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms

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Author Info

  • Blandina Oliveira

    ()
    (ESTG, Instituto Politécnico de Leiria)

  • Adelino Fortunato

    ()
    (GEMF and Faculdade de Economia, Universidade de Coimbra)

Abstract

The purpose of this paper is to use Dynamic Panel Data (DPD) models to see if Gibrat’s law holds and to analyse the empirical determinants of firm growth. This paper makes significant contributions to the empirical literature on the dynamics of firm growth, since it updates the work carried out by previous researchers in this field using micro panel data and GMM estimators. To conduct this study we use an unbalanced panel of Portuguese manufacturing firms over the period from 1990 to 1999. The main implication of our findings is that firm growth is not quite random since there are some determinants which exert influence on firm growth.

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Bibliographic Info

Paper provided by GEMF - Faculdade de Economia, Universidade de Coimbra in its series GEMF Working Papers with number 2003-07.

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Length: 33 pages
Date of creation: 2003
Date of revision:
Publication status: Published in International Journal of the Economics of Business, 13(1): 65-81, 2006.
Handle: RePEc:gmf:wpaper:2003-07

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Keywords: Firm growth; Gibrat’s law; Panel data; GMM estimators;

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References

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Cited by:
  1. Coluzzi, Chiara & Ferrando, Annalisa & Martinez-Carrascal, Carmen, 2009. "Financing obstacles and growth: an analysis for euro area non-financial corporations," Working Paper Series 0997, European Central Bank.
  2. Giunta, Anna & Nifo, Annamaria & Scalera, Domenico, 2009. "Subcontracting in the Italian industry. Labour Division, Firms’ Growth and North-South Divide," MPRA Paper 13084, University Library of Munich, Germany.
  3. Ioannis Kessides & Li Tang, 2010. "Sunk Costs, Market Contestability, and the Size Distribution of Firms," Review of Industrial Organization, Springer, vol. 37(3), pages 215-236, November.
  4. Molinari, Massimo, 2013. "Joint analysis of the non-linear debt–growth nexus and cash-flow sensitivity: New evidence from Italy," Structural Change and Economic Dynamics, Elsevier, vol. 24(C), pages 34-44.
  5. Ioannis Giotopoulos & Georgios Fotopoulos, 2010. "Intra-Industry Growth Dynamics in the Greek Services Sector: Firm-Level Estimates for ICT-Producing, ICT-Using, and Non-ICT Industries," Review of Industrial Organization, Springer, vol. 36(1), pages 59-74, February.
  6. Antje Schimke, 2011. "Factors Affecting the Growth of Manufacturing Firms – Analysis of Growth Stages: A Case of German Firms," ERSA conference papers ersa10p1386, European Regional Science Association.
  7. Marco Corsino, 2008. "Product Innovation and Growth: The Case of Integrated Circuits," LEM Papers Series 2008/02, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  8. Chiara Coluzzi & Annalisa Ferrando & Carmen Martínez-Carrascal, 2009. "Financing obstacles and growth: An analysis for euro area non-financial corporations," Banco de Espa�a Working Papers 0836, Banco de Espa�a.
  9. Younsuk Park & Jaeun Shin & Taejong Kim, 2010. "Firm size, age, industrial networking, and growth: a case of the Korean manufacturing industry," Small Business Economics, Springer, vol. 35(2), pages 153-168, September.
  10. García-Manjón, Juan V. & Romero-Merino, M. Elena, 2012. "Research, development, and firm growth. Empirical evidence from European top R&D spending firms," Research Policy, Elsevier, vol. 41(6), pages 1084-1092.
  11. Anna Giunta & Domenico Scalera & Annamaria Nifo, 2008. "Divisione del lavoro, crescita e divari di performance nell'industria italiana degli anni '90," Departmental Working Papers of Economics - University 'Roma Tre' 0097, Department of Economics - University Roma Tre.

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