Gibrat's Law and the Impact of Ownership: A Case Study of Croatia's Hotel Industry

Neven Ivandić
Additional contact information
Neven Ivandić: Institute for Tourism, Vrhovec 5, 10000 Zagreb, Croatia

Tourism Economics, 2015, vol. 21, issue 1, 105-120

Abstract: This paper tests the hypothesis that in conditions of economic transition Gibrat's Law of proportionate growth holds, regardless of the type of firm ownership. The hypothesis is tested on a population of Croatian hotel companies, divided into three ownership type groups, operating continuously from 1998 to 2008. The developed dynamic multiple linear regression model of Croatian hotel firms evaluated by the two step Arellano–Bond estimator is used as a basis for analysis. Estimation of model parameters suggests that the dynamics of firms in transition conditions are not just a reflection of random effects, but are also affected by size and ownership factors. The results show that smaller companies grow more rapidly than larger ones and that growth varies depending on firm ownership, with slower growth in state-owned firms.

Keywords: transition; ownership; Gibrat's Law; Croatian hotel industry (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.5367/te.2014.0439 (text/html)

Related works:
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:sae:toueco:v:21:y:2015:i:1:p:105-120

DOI: 10.5367/te.2014.0439

Access Statistics for this article

More articles in Tourism Economics
Bibliographic data for series maintained by SAGE Publications ().