When is Gibrat's Law a Law?

Sven-Olov Daunfeldt and Niklas Elert ()

No 45, HUI Working Papers from HUI Research

Abstract: The purpose of this paper is to investigate if the industry context matters for whether Gibrat's law is rejected or not using a dataset that consists of all limited firms in 5-digit NACE-industries in Sweden during 1998-2004. The results reject Gibrat's law on an aggregate level, since small firms grow faster than large firms. However, Gibrat's law is confirmed about as often as it is rejected when industry-specific regressions are estimated. It is also found that the industry context - e.g., minimum e¢ cient scale, market concentration rate, and number of young firms in the industry - matters for whether Gibrat's law is rejected or not.

Keywords: Firm growth; firm size; job creation; small firms (search for similar items in EconPapers)
JEL-codes: L11 L25 L26 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2010-11-26
New Economics Papers: this item is included in nep-com, nep-ent and nep-sbm
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published as Daunfeldt, Sven-Olov and Niklas Elert, 'When is Gibrat's Law a Law?' in Small Business Economics, 2013, pages 133-147.

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: When is Gibrat’s law a law? (2013)
Working Paper: When is Gibrat's Law a Law? (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:huiwps:0045

Access Statistics for this paper

More papers in HUI Working Papers from HUI Research Handelns Forskningsinstitut, c/o HUI Research, Regeringsgatan 60, 103 29 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Hans Seerar Westerberg ().