European Regional Science Association
|
European Regional Science Association
|
|
|
|
|
The abstract for paper number 481:
Leo J.G. Van Wissen, Department of Economic Geography, Faculty of Spatial Sciences, University of Groningen, Groningen, The Netherlands
Geographical variability of Gibrat's law of firm growth
According to Gibrat's law there is no relationship between firm growth rate and firm size. Numerous studies have tested this relationship in different settings and since it's original formulation it has been amended in various respects. For instance there may be differences across economic sectors, or it applies only to firms larger than the minimum efficient scale.
This paper explores the geographical dimension in Gibrat's law. Are there differences between urban, suburban and rural located firms, and if so, can they be explained by locational characteristics?
These questions will be explored both theoretically and empirically, using data from a register of business establishments in the Netherlands, covering the period 1996-2000, and for different economic sectors.
Unfortunately full paper has not been submitted.