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Gibrat's Law and the Growth of Cities in Brazil: A Panel Data Investigation

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  • Marcelo Resende

    (Instituto de Economia, Universidade Federal do Rio de Janeiro, Av. Pasteur 250, Urca, 22290-240, Rio de Janeiro-RJ, Brazil, mresende@ie.ufrj.br)

Abstract

The paper builds on the results of Clark and Stabler who associated Gibrat's law on the independence of growth rate and city size with unit root tests. The paper proposes a direct test of the unit root hypothesis for firm size based on recently developed panel data unit root tests. The results for a sample of Brazilian cities over the period 1980-2000 favour Gibrat's law. Moreover, the results are robust when one considers sub-samples defined for different population sizes and age of municipality.

Suggested Citation

  • Marcelo Resende, 2004. "Gibrat's Law and the Growth of Cities in Brazil: A Panel Data Investigation," Urban Studies, Urban Studies Journal Limited, vol. 41(8), pages 1537-1549, July.
    • Handle: RePEc:sae:urbstu:v:41:y:2004:i:8:p:1537-1549
    DOI: 10.1080/0042098042000226993
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    References listed on IDEAS

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    Cited by:

    1. Cura, Robin & Cottineau, Clémentine & Swerts, Elfie & Ignazzi, Cosmo Antonio & Bretagnolle, Anne & Vacchiani-Marcuzzo, Celine & Pumain, Denise, 2017. "The Old and the New: Qualifying City Systems in the World with Classical Models and New Data," SocArXiv pbzn6, Center for Open Science.
    2. González-Val, Rafael & Lanaspa, Luis & Sanz, Fernando, 2008. "New Evidence on Gibrat’s Law for Cities," MPRA Paper 10411, University Library of Munich, Germany.
    3. Rafael Gonz�lez-Val & Luis Lanaspa, 2016. "Patterns in US Urban Growth, 1790-2000," Regional Studies, Taylor & Francis Journals, vol. 50(2), pages 289-309, February.
    4. Denise PUMAIN, 2012. "Une Théorie Géographique Pour La Loi De Zipf," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 36, pages 31-54.
    5. Valente J. Matlaba & Mark J. Holmes & Philip McCann & Jacques Poot, 2013. "A Century Of The Evolution Of The Urban System In Brazil," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 25(3), pages 129-151, November.
    6. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    7. Ribeiro, Eduardo Pontual, 2007. "The Dynamics of Firm Size Distribution," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 27(2), November.
    8. Gómez-Déniz, Emilio & Calderín-Ojeda, Enrique, 2015. "On the use of the Pareto ArcTan distribution for describing city size in Australia and New Zealand," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 821-832.
    9. González-Val, Rafael & Lanaspa, Luis & Sanz, Fernando, 2008. "New Evidence on Gibrat’s Law for Cities," MPRA Paper 10411, University Library of Munich, Germany.
    10. Marcos Lima & Marcelo Resende, 2007. "Convergence of per capita GDP in Brazil: an empirical note," Applied Economics Letters, Taylor & Francis Journals, vol. 14(5), pages 333-335.
    11. Rafael González-Val & Luis Lanaspa & Fernando Sanz-Gracia, 2014. "New Evidence on Gibrat’s Law for Cities," Urban Studies, Urban Studies Journal Limited, vol. 51(1), pages 93-115, January.
    12. Luis Fernando Lanaspa Santolaria & Irene Olloqui Cuartero & Fernando Sanz Garcia, 2012. "Common Trends and Linkages in the US Manufacturing Sector, 1969–2000," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 36(5), pages 1093-1111, September.
    13. Kwok Tong Soo, 2014. "Zipf, Gibrat and geography: Evidence from China, India and Brazil," Papers in Regional Science, Wiley Blackwell, vol. 93(1), pages 159-181, March.
    14. Aslan, Alper, 2008. "Convergence of per capita health care expenditures in OECD Countries," MPRA Paper 10592, University Library of Munich, Germany.
    15. Vieira, Elizabeth S. & Lepori, Benedetto, 2016. "The growth process of higher education institutions and public policies," Journal of Informetrics, Elsevier, vol. 10(1), pages 286-298.
    16. Rafael González-Val & Luis Lanaspa & Fernando Sanz, 2011. "Gibrat's Law for Cities Revisited," ERSA conference papers ersa10p199, European Regional Science Association.

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