Do Firm Growth Models Work in Service Industries in Developing Economies? An Investigation of the Relationship Between Firms’ Growth, Size and Age

IF 0.4 Q4 ECONOMICS
B. Villari, B. Subramanian, Piyush Kumar, P. Hota
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引用次数: 0

Abstract

Growth models such as Gibrat’s law and Jovanovic’s theory that examine the relationship between the firms’ growth, age and size have either been tested on data from developed economies or from the manufacturing sectors in developing economies. This study checks the suitability of these models in service sectors in developing economies as service sectors have distinct characteristics and developing economies such as India are heavily dependent on this sector. The current study considers three major service sectors contributing to India’s economy vis-à-vis financial services, information technology and real estate for the period 2002–2005. We observed that during 2002–2005, India’s economy was stable without wide fluctuations in economic performance, such as gross domestic product, unemployment or inflation. These sectors not only had a significant impact on economic growth but also had comprehensive microeconomic data. Our results negate both Gibrat’s law and Jovanovic’s theory. We argue that service sectors which are knowledge-intensive will experience different growth patterns compared to manufacturing sectors. We find a definite and significant relationship between firms’ growth and their size and age. Also, we find concluding evidence that younger firms up to 10 years of age struggle a lot more than older firms in the Indian service sector. JEL: D20, D21, D22, D02
企业增长模型在发展中经济体的服务业中有效吗?企业成长性、规模与年龄关系研究
考察企业增长、年龄和规模之间关系的增长模型,如Gibrat定律和Jovanovic理论,要么在发达经济体的数据上进行了测试,要么在发展中经济体的制造业部门进行了测试。这项研究检查了这些模型在发展中经济体服务业中的适用性,因为服务业具有独特的特征,而印度等发展中经济体内严重依赖这一部门。目前的研究考虑了2002-2003年期间对印度经济有贡献的三个主要服务部门,即金融服务、信息技术和房地产。我们观察到,在2002年至2005年期间,印度经济稳定,经济表现没有大幅波动,如国内生产总值、失业率或通货膨胀。这些部门不仅对经济增长产生了重大影响,而且有全面的微观经济数据。我们的结果否定了吉卜拉特定律和约万诺维奇理论。我们认为,与制造业相比,知识密集型的服务业将经历不同的增长模式。我们发现,企业的成长与其规模和年龄之间存在着明确而显著的关系。此外,我们发现结论性证据表明,在印度服务业,年龄在10岁以下的年轻公司比年龄较大的公司要挣扎得多。JEL:D20,D21,D22,D02
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来源期刊
CiteScore
1.40
自引率
0.00%
发文量
14
期刊介绍: The explosion of information and research that has taken place in recent years has had a profound effect upon a variety of existing academic disciplines giving rise to the dissolution of barriers between some, mergers between others, and the creation of entirely new fields of enquiry.
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