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

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  • John Hutchinson

Abstract

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.

Suggested Citation

  • John Hutchinson, 2003. "Is there a Lower Bound to the Firm Size Distribution Comparing Transition Economies with an Established Market Economy," LICOS Discussion Papers 13503, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:13503
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp135.pdf
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    References listed on IDEAS

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    1. Buzzacchi, Luigi & Valletti, Tommaso M., 2006. "Firm size distribution: Testing the "independent submarkets model" in the Italian motor insurance industry," International Journal of Industrial Organization, Elsevier, vol. 24(4), pages 809-834, July.
    2. John Sutton, 1997. "Gibrat's Legacy," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 40-59, March.
    3. Gérard Roland, 2004. "Transition and Economics: Politics, Markets, and Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 026268148x, January.
    4. Evans, David S, 1987. "Tests of Alternative Theories of Firm Growth," Journal of Political Economy, University of Chicago Press, vol. 95(4), pages 657-674, August.
    5. Patrick P. Walsh & Ciara Whelan, 2001. "Product differentiation and firm size distribution : an application to carbonated soft drinks," Working Papers 200113, School of Economics, University College Dublin.
    6. Pakes, Ariel & Ericson, Richard, 1998. "Empirical Implications of Alternative Models of Firm Dynamics," Journal of Economic Theory, Elsevier, vol. 79(1), pages 1-45, March.
    7. 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.
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    Cited by:

    1. Jan De Loecker & Jozef Konings, 2003. "Creative Destruction and Productivity Growth in an Emerging Economy Evidence from Slovenian Manufacturing," LICOS Discussion Papers 13803, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

    More about this item

    Keywords

    firm size distribution; transition economies; manufacturing;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • P2 - Economic Systems - - Socialist Systems and Transition Economies
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

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