L. Simbaña-Taipe, Pablo Andrés Franco Chasi, Paola Alexandra Pacheco Pillajo, María Jesús Rodríguez‐Gulías, David Rodeiro‐Pazos
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The Validity of Gibrat’s Law: Evidence from Ecuadorian Service SMEs
Abstract The objective of this research is to analyze the relationship between size and growth through the validation of Gibrat's law. A sample of 17,082 Ecuadorian companies in the service sector is used for the period 2010–2015. The estimation method used is that of quantile regression for panel data; the results suggest that small companies grow faster than their larger counterparts. The results show that the growth, measured through sales and employment, of SMEs in the service sector in Ecuador is not independent of firm size and therefore does not correspond to a random process.
期刊介绍:
Latin American Business Review is a quarterly, refereed journal which facilitates the exchange of information and new ideas between academics, business practitioners, public policymakers, and those in the international development community. Special features of the journal will keep you current on various teaching, research, and information sources. These activities all focus on the business and economic environment of the diverse and dynamic countries of the Americas.