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Is the service sector different in size heterogeneity?

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  • Junho Na

    (LG Economic Research Institute)

  • Jeong-dong Lee

    (Seoul National University)

  • Chulwoo Baek

    (Duksung Women’s University)

Abstract

We examined whether significant differences in size heterogeneity exist between the service and the manufacturing industries by using PL exponents as the proxy for intra-industry size heterogeneity. For the purpose, we analyzed firm size distribution (FSD) and estimated the PL exponents, on the right tails of FSD, of the service and manufacturing industries in Korea for the period 2008–2012 using the Business Activity Survey dataset created by the Korean National Statistical Office As a result, we observed that the estimates of the PL exponents for the service industry are lower than those for the manufacturing industry ( $$\upalpha _\mathrm{Service}

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  • Junho Na & Jeong-dong Lee & Chulwoo Baek, 2017. "Is the service sector different in size heterogeneity?," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 12(1), pages 95-120, April.
    • Handle: RePEc:spr:jeicoo:v:12:y:2017:i:1:d:10.1007_s11403-015-0152-x
    DOI: 10.1007/s11403-015-0152-x
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