Gibrat's Law and the Growth of Cities in Brazil: A Panel Data Investigation

Marcelo Resende

Urban Studies, 2004, vol. 41, issue 8, 1537-1549

Abstract: The paper builds on the results of Clark and Stabler who associated Gibrat's law on the independence of growth rate and city size with unit root tests. The paper proposes a direct test of the unit root hypothesis for firm size based on recently developed panel data unit root tests. The results for a sample of Brazilian cities over the period 1980-2000 favour Gibrat's law. Moreover, the results are robust when one considers sub-samples defined for different population sizes and age of municipality.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:sae:urbstu:v:41:y:2004:i:8:p:1537-1549

DOI: 10.1080/0042098042000226993

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