Concluding Gibrat’s law with Turkish firm data

Aydoğan, Yiğit; Donduran, Murat

doi:10.1016/j.physa.2019.122066

Cited by 6 publications

(2 citation statements)

References 25 publications

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“…Gibrat’s law as demonstrated in Gibrat ( 1931 ), Simon and Bonini ( 1958 ), Sutton ( 1997 ), Coad ( 2009 ), Aydogan and Donduran ( 2019 ), and Dosi et al ( 2019 ) can formally be stated as follows: …”

Section: Theoretical and Empirical Backgroundmentioning

confidence: 99%

“…Even though studies that used large census datasets on manufacturing are available for developed economies (for example Axtell 2001 ; Tang 2015 ; Coad et al 2011 , 2018 ), they are rare for developing ones due to a paucity of data. Despite this, few studies that have utilized complete microdata can be mentioned from developing countries (including Aydogan and Donduran 2019 ; Aydoğan 2020 among others) though they do not focus on manufacturing firms. This study, however, relies on the complete census-based microdata of Ethiopia’s manufacturing sector spanning from 1996 to 2017.…”

Section: Introductionmentioning

confidence: 99%

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The Dynamics of Firm Growth in Sub-Saharan Africa: Evidence from Ethiopian Manufacturing Sector 1996–2017

Tsaedu

Chen

2021

J Ind Compet Trade

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Despite the pile of literature on firm growth dynamics, studies that use large census data have been greatly rare for developing countries mainly due to a paucity of data. This study, however, relies on a deep analysis of complete microdata of Ethiopian manufacturing firms over a very long enough period (22 years). Hence, this study adds to the ongoing debates on the firm growth dynamics, since we provided appealing econometric findings mainly emanating from the inclusive methodological approach implemented and the complete long period census data used, as it helped us to provide clear and consistent evidence against Gibrat’s law. The results revealed that conditional on survival, younger and smaller firms grow faster. On the contrary, there is a pattern of negative persistence growth, where positive growth is followed by a negative growth after a year. Overall these findings show the presence of firms formed by subsistence-seeking entrepreneurs in the economy.

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Section: Theoretical and Empirical Backgroundmentioning

confidence: 99%