TESTING CONVERGENCE TOWARD GIBRAT’S LAW FOR CZECH MANUFACTURING FIRMS

• Authors: Fiala Roman
• Languages of publication: EN

Abstracts

EN

The paper attempts to examine if there is any convergence toward Gibrat’s law over time for the sample of Czech manufacturing firms over the time period of 2007 – 2015. Firstly, the validity of Gibrat’s law over the entire period from 2007 to 2015 was investigated separately for two samples – for large companies and for small and medium-sized enterprises (SMEs). The validity of Gibrat’s law was tested via the linear regression model with the first-order autoregressive process. While for large firms, there was found no relationship between firm size and firm growth, for the sample of SMEs Gibrat’s law was rejected. Secondly, we tested for both samples if there is any convergence toward Gibrat’s law over time. There is convergence toward Gibrat’s law over time for the sample of SMEs.

Keywords

EN

GIBRAT’S LAW; FIRM; GROWTH; MANUFACTURING; LINEAR REGRESSION MODEL; CZECH REPUBLIC

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2017
• Volume: 65
• Issue: 8
• Pages: 737 – 750

Contributors

author

Fiala Roman

• College of Polytechnics Jihlava, Department of Economic Studies, Tolstého 16, 586 01 Jihlava, Czech Republic