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Company size distribution for developing countries

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  • Hernández-Pérez, R.
  • Angulo-Brown, F.
  • Tun, Dionisio

Abstract

We analyze company size distribution for developing countries using the framework proposed by Ramsden and Kiss-Haypál [Physica A 277 (2000) 220]. Although this distribution does not fit developing countries data as good as it does to developed ones, the parameters of the distribution (θ and ρ) for developing countries are remarkably different to those for developed countries. This result supports the hypothesis that parameter θ plays a role analogous to the temperature of the economy, which could be related to the level of economic development, as reported previously by Saslow [Am. J. Phys. 67 (1999) 1239]. Also, this supports the hypothesis that ρ is related to the competitive exclusion in economics, as ρ tending to zero implies the competition free limit case where company size distribution is predicted to be a power-law, as reported by Takayasu and Okuyama [Fractals 6 (1998) 67]. Finally, we report the goodness of fit for two functions: a finite-size scaling and a log–normal. We found that these functions fit the data better in some cases. However, this is not in itself sufficient evidence that those functions are an appropriate representation of the phenomenon.

Suggested Citation

  • Hernández-Pérez, R. & Angulo-Brown, F. & Tun, Dionisio, 2006. "Company size distribution for developing countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 359(C), pages 607-618.
    • Handle: RePEc:eee:phsmap:v:359:y:2006:i:c:p:607-618
    DOI: 10.1016/j.physa.2005.04.027
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    References listed on IDEAS

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    1. Ramsden, J.J. & Kiss-Haypál, Gy., 2000. "Company size distribution in different countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 277(1), pages 220-227.
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    4. A. A. Blokhin & A. A. Likhachev, 2021. "Institutional Barriers for Fast Growing Companies," Studies on Russian Economic Development, Springer, vol. 32(4), pages 364-373, July.
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    9. Hernández-Pérez, R., 2010. "An analogy of the size distribution of business firms with Bose–Einstein statistics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(18), pages 3837-3843.
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