Gibrat's Law and the impact of ownership: a case study of Croatia's hotel industry
-
Neven Ivandić [1]
-
[1] Institute for Tourism
Institute for Tourism
Croacia
-
- Localización: Tourism economics: the business and finance of tourism and recreation, ISSN 1354-8166, Vol. 21, Nº. 1 (February ), 2015 (Ejemplar dedicado a: Current Research in Tourism Economics), págs. 105-120
- Idioma: inglés
- Texto completo no disponible (Saber más ...)
-
Resumen
This paper tests the hypothesis that in conditions of economic transition Gibrat's Law of proportionate growth holds, regardless of the type of firm ownership. The hypothesis is tested on a population of Croatian hotel companies, divided into three ownership type groups, operating continuously from 1998 to 2008. The developed dynamic multiple linear regression model of Croatian hotel firms evaluated by the two step Arellano–Bond estimator is used as a basis for analysis. Estimation of model parameters suggests that the dynamics of firms in transition conditions are not just a reflection of random effects, but are also affected by size and ownership factors. The results show that smaller companies grow more rapidly than larger ones and that growth varies depending on firm ownership, with slower growth in state-owned firms.
