The Evolution of the Firm Size Distribution and Nationality of Ownerhship

Eric Strobl (), Holger Görg and Salvador Barrios ()

Economics Bulletin, 2005, vol. 12, issue 1, 1-11

Abstract: It has recently been shown that the firm size distribution is initially skewed to the right and then evolves over time to become more lognormal, and argued that this is likely due to firms initially facing financial constraints, see Cabral and Mata(2003). We conjecture that, if this is true, then such a pattern should be much less apparent for multinational companies for which financial constraints are generally considered to be lower than non-multinationals. Moreover, such a difference should be re-enforced by the fact that multinationals are less likely to face selection issues. These propositions are confirmed using plant level Irish manufacturing data.

JEL-codes: F2 L6 (search for similar items in EconPapers)
Date: 2005-01-04
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Citations: View citations in EconPapers (2)

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Working Paper: The evolution of the firm size distribution and nationality of ownership (2004)
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