IDEAS home Printed from https://ideas.repec.org/a/osi/bulimm/v17y2017p3-13.html
   My bibliography  Save this article

Testing Gibrat’S Law On Croatian Freight Transport And Logistics Firms

Author

Listed:
  • Helga Pavlic Skender

    (University of Rijeka, Faculty of Economics)

  • Petra Adelajda Mirkovic

    (University of Rijeka, Faculty of Economics)

  • Vinko Zaninovic

    (University of Rijeka, Faculty of Economics)

Abstract

Gibrat’s law states that growth rate of the firm is independent of firm’s size. This paper tests Gibrat’s law on the panel data of Croatian freight transport and logistics firms during the period from 2006 to 2015. The data from Bureau van Dijk’s Amadeus database is used to test the Law. The sample includes 565 firms. The aim of the paper is to analyze whether the growth of the freight transport and logistics firms in Croatia depends of its size. The number of employees and sales of the firm are used as independent variables, while yearly sales growth is taken as the depended variable.In analysis is also included the age of the firm in order to control for variable other than the size that affect the growth rate of the firm. Using econometric model (fixed effects estimator) we find that there is statistically significant proportional connection between size of the firms and their respective growth rates, moreover the results shows the growth in number of employees has a positive impact on the growth rate while the growth in sales and age of the firm have negative impact on the growth rate. It means larger and older firms have slower growth rate. That is why the Gibrat’s law is rejected in case of Croatian freight transport and logistics firms.

Suggested Citation

  • Helga Pavlic Skender & Petra Adelajda Mirkovic & Vinko Zaninovic, 2017. "Testing Gibrat’S Law On Croatian Freight Transport And Logistics Firms," Business Logistics in Modern Management, Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia, vol. 17, pages 3-13.
    • Handle: RePEc:osi:bulimm:v:17:y:2017:p:3-13
    as

    Download full text from publisher

    File URL: http://www.efos.unios.hr/repec/osi/bulimm/PDF/BusinessLogisticsinModernManagement17/blimm1701.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sevgi Sezer & Tezcan Abasiz, 2017. "The Impact Of Logistics Industry On Economic Growth: An Application In Oecd Countries," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 5(1), pages 11-23.
    2. D.B. Audretsch & L. Klomp & E. Santarelli & A.R. Thurik, 2004. "Gibrat's Law: Are the Services Different?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(3), pages 301-324, May.
    3. Almus, Matthias & Nerlinger, Eric A, 2000. "Testing "Gibrat's Law" for Young Firms--Empirical Results for West Germany," Small Business Economics, Springer, vol. 15(1), pages 1-12, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Georgios Fotopoulos & Ioannis Giotopoulos, 2010. "Gibrat’s law and persistence of growth in Greek manufacturing," Small Business Economics, Springer, vol. 35(2), pages 191-202, September.
    2. Gavin Reid & Zhibin Xu, 2012. "Generalising Gibrat: using Chinese evidence founded on fieldwork," Small Business Economics, Springer, vol. 39(4), pages 1017-1028, November.
    3. Reid, Gavin C & Xu, Zhibin, 2009. "Growth and Survival Determinants of Chinese Private Firms: Fieldwork evidence and econometric estimates," SIRE Discussion Papers 2009-60, Scottish Institute for Research in Economics (SIRE).
    4. Blandina Oliveira & Adelino Fortunato, 2006. "Testing Gibrat's Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 13(1), pages 65-81.
    5. Marko Peric & Vanja Vitezic, 2016. "Impact of global economic crisis on firm growth," Small Business Economics, Springer, vol. 46(1), pages 1-12, January.
    6. Canarella, Giorgio & Miller, Stephen M., 2018. "The determinants of growth in the U.S. information and communication technology (ICT) industry: A firm-level analysis," Economic Modelling, Elsevier, vol. 70(C), pages 259-271.
    7. Erik Stam, 2010. "Growth beyond Gibrat: firm growth processes and strategies," Small Business Economics, Springer, vol. 35(2), pages 129-135, September.
    8. Hasan Ayaydin & Pinar Hayaloglu, 2014. "The Effect of Corruption on Firm Growth: Evidence from Firms in Turkey," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(5), pages 607-624, May.
    9. Avenel, E. & Corolleur, F. & Gauthier, C. & Rieu, C., 2005. "Start-ups, firm growth and the consolidation of the French biotech industry," Working Papers 200503, Grenoble Applied Economics Laboratory (GAEL).
    10. P. Ganugi & L. Grossi & G. Gozzi, 2005. "Testing Gibrat's law in Italian macro-regions: Analysis on a panel of mechanical companies," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 14(1), pages 101-126, February.
    11. Stelian STANCU & Eugenia GRECU & Mirela Ionela ACELEANU & Daniela Livia TRAŞCĂ & Claudiu Tiberiu ALBULESCU, 2021. "Does Firm Size Matters for Firm Growth? Evidence from the Romanian Health Sector," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 17-31, December.
    12. Marko Peric & Vanja Vitezic, 2016. "Impact of global economic crisis on firm growth," Small Business Economics, Springer, vol. 46(1), pages 1-12, January.
    13. Gerrit de Wit & Haibo Zhou, 2009. "Determinants and dimensions of firm growth," Scales Research Reports H200903, EIM Business and Policy Research.
    14. Dirk Burghardt & Marco Helm, 2015. "Firm growth in the course of mergers and acquisitions," Small Business Economics, Springer, vol. 44(4), pages 889-904, April.
    15. Hongya Li & Laiqun Jin & Yuanyao Ding, 2019. "Innovation, Mark-Up and Firm Growth: Evidence from China’s New Generation IT Industry," Sustainability, MDPI, vol. 11(7), pages 1-19, April.
    16. Junho Na & Jeong-dong Lee & Chulwoo Baek, 2017. "Is the service sector different in size heterogeneity?," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 12(1), pages 95-120, April.
    17. Dimelis, Sophia & Giotopoulos, Ioannis & Louri, Helen, 2015. "Can firms grow without credit?: evidence from the Euro Area, 2005-2011: a quantile panel analysis," LSE Research Online Documents on Economics 61157, London School of Economics and Political Science, LSE Library.
    18. Daunfeldt, Sven-Olov & Elert, Niklas & Lang, Ã…sa, 2012. "Does Gibrat's law hold for retailing? Evidence from Sweden," Journal of Retailing and Consumer Services, Elsevier, vol. 19(5), pages 464-469.
    19. Bo-Rui Yan & Qian-Li Dong & Qian Li & Fahim UI Amin & Jia-Ni Wu, 2021. "A Study on the Coupling and Coordination between Logistics Industry and Economy in the Background of High-Quality Development," Sustainability, MDPI, vol. 13(18), pages 1-24, September.
    20. Wright, Mark, 2004. "Firm Size Dynamics in the Aggregate Economy," Santa Cruz Department of Economics, Working Paper Series qt4rs4202s, Department of Economics, UC Santa Cruz.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osi:bulimm:v:17:y:2017:p:3-13. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Davor Dujak,PhD (email available below). General contact details of provider: https://edirc.repec.org/data/efosihr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.