Scandinavian Working Papers in Economics
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No 47:
Does Gibratís Law Hold for Retailing? Evidence from Sweden

Sven-Olov Daunfeldt (), Niklas Elert and Ňsa Lang

Abstract: Gibratís Law predicts that firm growth is a purely random effect and therefore should be independent of firm size. The purpose of this paper is to test Gibratís law within the retail industry, using a novel data-set comprising all Swedish limited liability companies active at some point between 1998 and 2004. Very few studies have previously investigated whether Gibratís Law seems to hold for retailing, and they are based on highly aggregated data. Our results indicate that Gibratīs Law can be rejected for a large majority of five-digit retail industries in Sweden, since small retail firms tend to grow faster than large ones.

Keywords: firm dynamics; firm size; firm growth; retail industry; (follow links to similar papers)

JEL-Codes: L11; L25; L81; (follow links to similar papers)

33 pages, January 1, 2011

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This paper is published as:
Daunfeldt, Sven-Olov, Niklas Elert and Ňsa Lang, (2012), 'Does Gibratís Law Hold for Retailing? Evidence from Sweden', Journal of Retailing and Consumer Services, Vol. 19, September, No. 5, pages 464-469

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