The Influence of Size and R&D on the Growth of Firms in the U.S
This study examines the role of size and R&D in explaining the rate of growth of firms by testing Gibrat's law. In particular, this paper extends earlier studies, by addressing this question: Do the size-growth relationships and the consequent size-distribution of firms depend on whether or not the firms are operating in R&D-intensive industries? The empirical evidence indicates an affirmative answer to this question. Further, our results appear to refute Gibrat's law. Firm growth rates are autocorrelated. There also seems to be adequate evidence showing that larger firms have lower growth rates.
Volume (Year): 19 (1993)
Issue (Month): 2 (Spring)
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References listed on IDEAS
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.:
- Ajit Singh & Geoffrey Whittington, 1975.
"The Size and Growth of Firms,"
Review of Economic Studies,
Oxford University Press, vol. 42(1), pages 15-26.
- Chesher, Andrew, 1979. "Testing the Law of Proportionate Effect," Journal of Industrial Economics, Wiley Blackwell, vol. 27(4), pages 403-11, June.
- Ijiri, Yuji & Simon, Herbert A, 1974. "Interpretations of Departures from the Pareto Curve Firm-Size Distributions," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 315-31, Part I, M.
- Richard R. Nelson & Sidney G. Winter, 1978. "Forces Generating and Limiting Concentration under Schumpeterian Competition," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 524-548, Autumn.
- 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.
- Hall, Bronwyn H, 1987. "The Relationship between Firm Size and Firm Growth in the U.S. Manufacturing Sector," Journal of Industrial Economics, Wiley Blackwell, vol. 35(4), pages 583-606, June.
- Vining, Daniel R, Jr, 1976. "Autocorrelated Growth Rates and the Pareto Law: A Further Analysis," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 369-80, April.
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