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An analysis of Chinese firm size distribution and growth rate

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  • Zou, Yijiang

Abstract

We analyzed a database comprising more than 100 thousands firms over the period 1998–2008. It was found that both asset and employee could be well fitted with power-law distribution, even firms were classified in different industries. Meanwhile, the growth rate distribution has a Laplace form, which is estimated by Subbotin family function, and it is also robust when firms are in categories. By analyzing annual logarithmic growth rates, we can see that the standard deviation has a power-law shape on both asset and employee, as researchers have found in western countries. In addition, there exists a power-law dependence of the standard deviation on the age of firms, which means that the growth of firms also rely on the years that they have opened.

Suggested Citation

  • Zou, Yijiang, 2019. "An analysis of Chinese firm size distribution and growth rate," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 535(C).
    • Handle: RePEc:eee:phsmap:v:535:y:2019:i:c:s0378437119313512
    DOI: 10.1016/j.physa.2019.122344
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    References listed on IDEAS

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    1. Alfarano, Simone & Milaković, Mishael & Irle, Albrecht & Kauschke, Jonas, 2012. "A statistical equilibrium model of competitive firms," Journal of Economic Dynamics and Control, Elsevier, vol. 36(1), pages 136-149.
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    Cited by:

    1. Lu, Jinfeng & Dimov, Dimo, 2023. "A system dynamics modelling of entrepreneurship and growth within firms," Journal of Business Venturing, Elsevier, vol. 38(3).
    2. Claudiu Tiberiu Albulescu & Matei Tămășilă & Ilie Mihai Tăucean, 2021. "The Nonlinear Relationship Between Firm Size and Growth in the Automotive Industry," Journal of Industry, Competition and Trade, Springer, vol. 21(3), pages 445-463, September.
    3. Tomaschitz, Roman, 2020. "Multiply broken power-law densities as survival functions: An alternative to Pareto and lognormal fits," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 541(C).
    4. Catana, Luigi-Ionut, 2022. "Stochastic orders of multivariate Jones–Larsen distribution family with empirical applications in physics, economy and social sciences," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 603(C).

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