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Zum Zusammenhang zwischen Größe und Wachstum bei Gründungen - Empirische Ergebnisse für West-Deutschland

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  • Nerlinger, Eric A.
  • Almus, Matthias
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    Abstract

    The present paper deals with the question whether 'Gibrat's law' is applicable to firms founded between 1989 and 1996 within the Western German manufacturing sector or not. The underlying assumption is that size of a firm has no in uence on its growth. Growth is rather determined by a process of random in uences. Within the context of the econometric analyses conducted in the present study, firms are subdivided into innovative and non-innovative young firms. A method introduced in Chesher (1979) is used to explore 'Gibrat's law' in order to examine the influence of firm size on growth. Moreover we test whether the growth process of firms remains stable over time or not. This so-called 'persistence of growth'-hypothesis implies that growth in one period has an impact on growth in the following period. Using data from the ZEW-Foundation Panel (West), 'Gibrat's law' is rejected for the group of innovative as well as for the group of non-innovative young firms in all periods examined. This confirms the results of a number of empirical studies over the last years, indicating that smaller firms have larger growth potential than larger ones. --

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    Bibliographic Info

    Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 99-01.

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    Date of creation: 1999
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    Handle: RePEc:zbw:zewdip:5217

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    Keywords: Young Innovative Firms; New Technology-based Firms (NTBFs); Employment Growth; Gibrat's Law;

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    References

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    1. David Audretsch, 1994. "Business Survival and the Decision to Exit," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 125-137.
    2. Licht, Georg & Nerlinger, Eric, 1998. "New technology-based firms in Germany: a survey of the recent evidence," Research Policy, Elsevier, vol. 26(9), pages 1005-1022, April.
    3. Bronwyn H. Hall, 1986. "The Relationship Between Firm Size and Firm Growth in the U.S. Manufacturing Sector," NBER Working Papers 1965, National Bureau of Economic Research, Inc.
    4. Storey, D. J. & Tether, B. S., 1998. "New technology-based firms in the European union: an introduction," Research Policy, Elsevier, vol. 26(9), pages 933-946, April.
    5. Schmalensee, Richard., 1987. "Inter-industry studies of structure and performance," Working papers 1874-87., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    6. Gavin C Reid, 1994. "Early Life-Cycle Behaviour of Micro-Firms in Scotland," CRIEFF Discussion Papers 9410, Centre for Research into Industry, Enterprise, Finance and the Firm.
    7. Steven J. Davis & John Haltiwanger & Scott Schuh, 1993. "Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts," NBER Working Papers 4492, National Bureau of Economic Research, Inc.
    8. Chesher, Andrew, 1979. "Testing the Law of Proportionate Effect," Journal of Industrial Economics, Wiley Blackwell, vol. 27(4), pages 403-11, June.
    9. Adonis Yatchew, 1998. "Nonparametric Regression Techniques in Economics," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 669-721, June.
    10. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-74, August.
    11. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-94, July.
    12. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-43, Nov.-Dec..
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    Cited by:
    1. Stefan Lachenmaier & Horst Rottmann, 2006. "Employment Effects of Innovation at the Firm Level," Ifo Working Paper Series Ifo Working Papers No. 27, Ifo Institute for Economic Research at the University of Munich.

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