The Growth Opportunities for SMEs?
The extensive empirical literature on the validity of Gibrat’s law does not in general verify the law as it finds that firms’ growth rates are negatively correlated with both firm size and age. However, some studies find that Gibrat’s law holds for sub-samples of firms such as large firms or firms belonging to special industries. It has been pointed out that these results are due to the fact that the likelihood of firm survival for natural reasons is positively related to firm size and age. This study uses a relatively large and representative sample of Danish firms to evaluate the validity of Gibrat’s law for different kinds of firms over the period 1990 - 2003. In contrast to the majority of earlier studies our analysis corrects for the bias in the estimations by using variables related to the survival of small firms.
|Date of creation:||27 Sep 2006|
|Contact details of provider:|| Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark|
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
More information through EDIRC
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.:
- J. O. S. Wilson & J. E. MORRIS, 2000. "The Size and Growth of UK Manufacturing and Service Firms," The Service Industries Journal, Taylor & Francis Journals, vol. 20(2), pages 25-38, April.
- Roy Thurik & Enrico Santarelli & David Audretsch & Luuk Klomp, 2002.
"Gibrat's Law: Are the Services Different?,"
Scales Research Reports
H200201, EIM Business and Policy Research.
- Audretsch, D.B. & Klomp, L. & Thurik, A.R., 2002. "Gibrat's Law: are the services different?," ERIM Report Series Research in Management ERS-2002-04-STR, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Blonigen, Bruce A. & Tomlin, KaSaundra, 2001.
"Size and growth of Japanese plants in the United States,"
International Journal of Industrial Organization,
Elsevier, vol. 19(6), pages 931-952, May.
- Bruce A. Blonigen & KaSaundra Tomlin, 1999. "Size and Growth of Japanese Plants in the United States," NBER Working Papers 7275, National Bureau of Economic Research, Inc.
- Peter Hart & Nicholas Oulton, 1999. "Gibrat, Galton and Job Generation," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 6(2), pages 149-164.
- Geroski, Paul, 2003. "The Evolution of New Markets," OUP Catalogue, Oxford University Press, number 9780199248896, December.
When requesting a correction, please mention this item's handle: RePEc:hhs:aareco:2006_003. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Helle Vinbaek Stenholt)
If references are entirely missing, you can add them using this form.