Specialization, Transaction Efficiency, and Firm Size: Empirical Evidence

Kit‐Chun Lam and Pak‐Wai Liu

Review of Development Economics, 2004, vol. 8, issue 3, 413-422

Abstract: The paper provides some empirical evidence for the relationship between average firm size and the relative transaction efficiency and per capita income as hypothesized by Liu and Yang in Journal of Economic Behavior and Organization 42(2) (2000):145–65. The empirical data of 11 industries in Hong Kong from 1982 to 1999 are found to be broadly consistent with the predictions of Liu and Yang.

Date: 2004
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