Testing Gibrat’s Law: Empirical Evidence from a Panel of Portuguese Manufacturing Firms

Blandina Oliveira () and Adelino Fortunato

No 2003-07, GEMF Working Papers from GEMF, Faculty of Economics, University of Coimbra

Abstract: The purpose of this paper is to use Dynamic Panel Data (DPD) models to see if Gibrat’s law holds and to analyse the empirical determinants of firm growth. This paper makes significant contributions to the empirical literature on the dynamics of firm growth, since it updates the work carried out by previous researchers in this field using micro panel data and GMM estimators. To conduct this study we use an unbalanced panel of Portuguese manufacturing firms over the period from 1990 to 1999. The main implication of our findings is that firm growth is not quite random since there are some determinants which exert influence on firm growth.

Keywords: Firm growth; Gibrat’s law; Panel data; GMM estimators (search for similar items in EconPapers)
JEL-codes: C23 L11 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2003
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Published in International Journal of the Economics of Business, 13(1): 65-81, 2006.

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Persistent link: https://EconPapers.repec.org/RePEc:gmf:wpaper:2003-07

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