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Scale-free distribution of firm-size distribution in emerging economies

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  • Lyócsa, Štefan
  • Výrost, Tomáš

Abstract

We test firm-size distributions in 10 emerging economies in Europe, using data on total assets of 1 884 006 firms. On the economy level, power-law firm size distribution is plausible for 8 countries with scaling parameter α≈2. At the industry level, power-law firm size distribution is not rejected for 53% of all cases. However, an alternative log-normal distribution that might follow from Gibrat’s law also appears to be likely as at the economy level it was not ruled out for 9 countries and 74% of industry-level cases.

Suggested Citation

  • Lyócsa, Štefan & Výrost, Tomáš, 2018. "Scale-free distribution of firm-size distribution in emerging economies," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 508(C), pages 501-505.
    • Handle: RePEc:eee:phsmap:v:508:y:2018:i:c:p:501-505
    DOI: 10.1016/j.physa.2018.05.088
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    Cited by:

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    2. Faustino Prieto & José María Sarabia & Enrique Calderín-Ojeda, 2021. "The nonlinear distribution of employment across municipalities," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 16(2), pages 287-307, April.
    3. Michal Brzozowski, 2019. "Access to Credit and Growth of Firms," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 69(3), pages 253-274, June.

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