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

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

Author Info

Blandina Oliveira () (ESTG, Instituto Politécnico de Leiria)
Adelino Fortunato () (GEMF and Faculdade de Economia, Universidade de Coimbra)

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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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Publisher 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), 2006, pages 65-81
Handle: RePEc:gmf:wpaper:2003-07

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Find related papers by JEL classification:
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Blandina Oliveira & Adelino Fortunato, 2003. "Testing Gibrat’s Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms," GEMF Working Papers 2003-07, GEMF - Faculdade de Economia, Universidade de Coimbra. [Downloadable!]
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. [Downloadable!]
Other versions:
- Marco Corsino, 2008. "Product Innovation and Growth: The Case of Integrated Circuits," ROCK Working Papers 047, Department of Computer and Management Sciences, University of Trento, Italy, revised 23 Jun 2008. [Downloadable!]
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. [Downloadable!]
Chiara Coluzzi & Annalisa Ferrando & Carmen Martínez-Carrascal, 2009. "Financing obstacles and growth: An analysis for euro area non-financial corporations," Banco de EspaÃ±a Working Papers 0836, Banco de España. [Downloadable!]
Chiara Coluzzi & Annalisa Ferrando & Carmen Martinez-Carrascal, 2009. "Financing obstacles and growth - an analysis for euro area non-financial corporations," Working Paper Series 997, European Central Bank. [Downloadable!]

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