The Validity of Gibrat´s Law in Individual Sectors of Czech Economy

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

The Validity of Gibrat´s Law in Individual Sectors of Czech Economy

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

The Validity of Gibrat´s Law in Individual Sectors of Czech Economy

Popis výsledku anglicky

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.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

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Návaznosti

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Rok uplatnění

2016

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

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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Počet stran výsledku

8

Strana od-do

897-904

Název nakladatele

STEF92 Technology Ltd.

Místo vydání

Sofia

Místo konání akce

Albena

Datum konání akce

24. 7. 2016

Typ akce podle státní příslušnosti

EUR - Evropská akce

Kód UT WoS článku

000395727200117