The Validity of Gibrat´s Law in Individual Sectors of Czech Economy
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F71226401%3A_____%2F16%3AN0000105" target="_blank" >RIV/71226401:_____/16:N0000105 - isvavai.cz</a>
Result on the web
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DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
The Validity of Gibrat´s Law in Individual Sectors of Czech Economy
Original language description
The study is focused on the relationship between firm size and firm growth in the Czech Republic. In accordance with Gibrat´s law which is also known as Law of proportionate effect, firm growth is the stochastic process that does not depend on firm size. The aim of this study is to test the validity of Gibrat´s law at the sectoral level using 1 digit Statistical classification of economic activities in the European Community Rev.2 (NACE). To examine the relationship between firm size and firm growth, the linear auto-regression model is applied and subsequently F-test is used to verify the null hypothesis that Gibrat´s law is valid. We test the Gibrat´s law validity only for private sector (sector A-N according to NACE). The validity of law is not rejected only in mining and quarrying (sector B) and financial and insurance activities (sector K). The study concludes that the Gibrat´s law is not valid in the Czech Republic in period 2008-2013 using industry level and smaller firm grow faster in comparison with their larger counterparts in the great majority of private sector.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
V - Vyzkumna aktivita podporovana z jinych verejnych zdroju
Others
Publication year
2016
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
3rd International Multidisciplinary Scientific Conference on Social Sciences & Art SGEM 2016
ISBN
978-619-7105-76-6
ISSN
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e-ISSN
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Number of pages
8
Pages from-to
897-904
Publisher name
STEF92 Technology Ltd.
Place of publication
Sofia
Event location
Albena
Event date
Jul 24, 2016
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
000395727200117