The Validity of Gibrat's Law in Developed and Developing Countries (2008–2013): Comparison based Assessment

Nassar, Islam A.; Almsafir, Mahmoud Khalid; Al-Mahrouq, Maher H.

doi:10.1016/j.sbspro.2014.03.676

Cited by 20 publications

(18 citation statements)

References 16 publications

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“…The results from the tested research objective showed that SMMEs Jayachandra 2014:125). Though other research (Fiala & Hedija 2015:1641Nassar et al 2014) may have found the use of the number of employees as an indicator of growth in SMMEs, this study found otherwise. The results show that though SMMEs show growth patterns along indicators tested, these businesses make do with their existing staff.…”

Section: Discussion and Implications Of Research Resultscontrasting

confidence: 84%

Pre-fourth industrial revolution : challenges for small, medium and micro enterprises in a transforming economy

Blose

Okeke-Uzodike

2020

Journal of Contemporary Management

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Section: Discussion and Implications Of Research Resultscontrasting

confidence: 84%

Pre-fourth industrial revolution : challenges for small, medium and micro enterprises in a transforming economy

Blose

Okeke-Uzodike

2020

Journal of Contemporary Management

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“…Our results seem to follow Gibrat’s Law (population growth rate of a city does not depend on the population size of the city) but they are different because our results are about the increase of GUP as a function of population size and not about the increase of population as a function of population nor the increase of GUP as a function of GUP. This latter would indeed be a form of Gibrat’s Law [ 50 – 54 ]. But as discussed, that is not the case here.…”

Section: Resultsmentioning

confidence: 99%

Urban scaling, geography, centrality: Relation with local government structures

Raan

2020

PLoS ONE

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We investigate socioeconomic urban scaling behavior of municipalities in Denmark, the Netherlands, and in particular in Germany. Our interest is twofold. First we investigate whether, and to what extent, scaling occurs in various types of urban areas. The second important topic of research concerns the comparison of specific types of urban areas with regard to the values of the gross urban product. This is a new approach: two scaling systems are compared not only in terms of the scaling exponent, but also in terms of the differences in the gross urban product. We are specifically interested in the role of urban governance in terms of local urban government structures. Germany is our central case because it works as a natural experiment: a large number of urban areas is one-governance, but others are not. More specifically, we distinguish between cities of which the surrounding urban area belongs to the municipality of the city (kreisfreie cities), and those specific districts (Kreise) which are urban areas consisting of several municipalities. Our findings suggest that urban areas with one municipality perform better than urban areas with fragmented governance structures. We also investigate the relation between scaling of Kreise and simple measures of centrality, including the Zipf-distribution. A strong relation is found between the measured residuals of the scaling equations and the socioeconomic position of cities assessed with a set of different socioeconomic indicators. Given the debate on the effectiveness of municipal reform, our results may lead to challenging conclusions about the importance of one-municipality instead of multi-municipality governance in urban areas. These results are relevant for policy as they suggest that there is a benefit to unifying the governance structure of compact urban agglomerations.

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“…We used sales as the indicator of firm size. Sales, total assets, and number of employees are among the most frequently used measurements of firm size in empirical studies (Nassar et al, 2014). We chose 'sales' because it is the most flexible indicator of the three.…”

Section: Methodsmentioning

confidence: 99%

Testing the validity of Gibrat’s law in the context of profitability performance

Fiala

Hedija

2019

Economic Research-Ekonomska Istraživanja

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The purpose of the article is to investigate whether the profitability of firms affects the validity of Gibrat's law. We begin with the thesis that small firms have less access to outside financial sources (especially bank loans) than large companies, so the role of profit in generating growth varies depending on firm size and is probably more important for smaller companies. We divided a large sample of companies (about 30,000 firms) into three profitability groups (lower 25%, middle 50%, and upper 25% of firms) to examine whether the size-growth relationship is influenced by profitability. Gibrat's law was verified both at the aggregate level and at the industry level (using one-digit NACE classification). The results show that the validity of Gibrat's law is not significantly influenced by the amount of firm profit at the aggregate level or at the industry level. In most sectors and profitability groups, smaller firms grow faster than their larger counterparts do.

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The Validity of Gibrat's Law in Developed and Developing Countries (2008–2013): Comparison based Assessment

Cited by 20 publications

References 16 publications

Pre-fourth industrial revolution : challenges for small, medium and micro enterprises in a transforming economy

Pre-fourth industrial revolution : challenges for small, medium and micro enterprises in a transforming economy

Urban scaling, geography, centrality: Relation with local government structures

Testing the validity of Gibrat’s law in the context of profitability performance

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