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Company size distribution in different countries

Author

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  • Ramsden, J.J.
  • Kiss-Haypál, Gy.

Abstract

The distribution of companies in a country, ranked in order of size (annual net revenue) s, follows the simplified canonical law sr∼(r+ρ)−1/θ remarkably well, where r is the rank, and θ and ρ are the parameters of the distribution. These parameters have been determined for 20 countries in America, Asia and Europe. Significant differences between countries are found. Neither θ nor ρ appears to correlate well with traditional economic indicators; indeed some countries often thought to be economically and politically, but not necessarily socially, similar show surprising differences, suggesting that wealth and prosperity are influenced by hidden layers hitherto inaccessible through standard economic theory.

Suggested Citation

  • Ramsden, J.J. & Kiss-Haypál, Gy., 2000. "Company size distribution in different countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 277(1), pages 220-227.
    • Handle: RePEc:eee:phsmap:v:277:y:2000:i:1:p:220-227
    DOI: 10.1016/S0378-4371(99)00572-5
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