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Is there a Lower Bound to the Firm Size Distribution Comparing Transition Economies with an Established Market Economy

  • John Hutchinson
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    We apply Suttons (1998) framework to compare the firm size distribution of two transition economies, Slovenia and Bulgaria with that of a market economy, Belgium. We find that there exists a minimum degree of inequality in the size of firms. In addition firm size inequality levels in Belgium and Slovenia are found to have comparable values while levels in Bulgaria remain considerably lower. Furthermore, we find that the industrial structure in a leading accession country is closest to the structure that we find in a market economy.

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    Paper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 13503.

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    Length: 27 pages
    Date of creation: 2003
    Date of revision:
    Handle: RePEc:lic:licosd:13503
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    1. Jozef Konings & Ana Xavier, 2002. "Firm Growth and Survival in a Transition Country: Micro Evidence from Slovenia," LICOS Discussion Papers 11402, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Luigi Buzzacchi & Tommaso Valletti, 1999. "Firm size distribution: testing the "independent submarkets model" in the Italian motor insurance industry," LSE Research Online Documents on Economics 6749, London School of Economics and Political Science, LSE Library.
    3. Patrick Paul Walsh & Ciara Whelan, 2002. "Product Differentiation and Firm Size Distribution: An Application to Carbonated Soft Drinks," STICERD - Economics of Industry Papers 31, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    4. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
    5. Ariel Pakes & Richard Ericson, 1989. "Empirical Implications of Alternative Models of Firm Dynamics," NBER Working Papers 2893, National Bureau of Economic Research, Inc.
    6. Evans, David S., 1986. "Tests of Alternative Theories of Firm Growth," Working Papers 86-36, C.V. Starr Center for Applied Economics, New York University.
    7. Gérard Roland, 2004. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 026268148x, June.
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