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Gibrat’s law for countries

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Author Info
González-Val, Rafael
Sanso-Navarro, Marcos

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Abstract

A re-assessment of Gibrat's Law in the context of country size is carried out in this paper. In addition, how similarly population is distributed in cities and countries is analyzed from a temporal perspective. Although evidence of Gibrat's Law is found, it is weaker than that previously established in Rose (2006). This is due to the methodology applied and is especially appreciable in very small countries. Nonetheless, we observe that the population growth process in countries is similar to that of cities. As a result, the similarities between how the population is distributed in these two geographical categories have increased over time.

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File URL: http://mpra.ub.uni-muenchen.de/9733/
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File URL: http://mpra.ub.uni-muenchen.de/13519/
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File URL: http://mpra.ub.uni-muenchen.de/13794/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9733.

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Date of creation: 03 Mar 2009
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Handle: RePEc:pra:mprapa:9733

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Related research
Keywords: Gibrat's Law ; Country Size;

Find related papers by JEL classification:
F00 - International Economics - - General - - - General
C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Hypothesis Testing
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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References listed on IDEAS
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  1. Gabaix, Xavier & Ioannides, Yannis M., 2004. "The evolution of city size distributions," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 53, pages 2341-2378 Elsevier. [Downloadable!] (restricted)
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  2. Rose, Andrew K, 2005. "Cities and Countries," CEPR Discussion Papers 5235, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Choi, In, 2001. "Unit root tests for panel data," Journal of International Money and Finance, Elsevier, vol. 20(2), pages 249-272, April. [Downloadable!] (restricted)
  4. Pesaran, M. Hashem, 2004. "General Diagnostic Tests for Cross Section Dependence in Panels," IZA Discussion Papers 1240, Institute for the Study of Labor (IZA). [Downloadable!]
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  5. Anindya Banerjee & Massimiliano Marcellino & Chiara Osbat, 2005. "Testing for PPP: Should we use panel methods?," Empirical Economics, Springer, vol. 30(1), pages 77-91, January. [Downloadable!] (restricted)
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  6. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July. [Downloadable!] (restricted)
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  7. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August. [Downloadable!] (restricted)
  8. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312. [Downloadable!]
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  9. Quah, Danny, 1993. "Empirical cross-section dynamics in economic growth," European Economic Review, Elsevier, vol. 37(2-3), pages 426-434, April. [Downloadable!] (restricted)
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