Helga Pavlić Skender, Petra Adelajda Mirković, Vinko Zaninović – TESTING GIBRAT’S LAW ON CROATIAN FREIGHT TRANSPORT AND LOGISTICS FIRMS

Helga Pavlić Skender, Petra Adelajda Mirković, Vinko Zaninović – TESTING GIBRAT’S LAW ON CROATIAN FREIGHT TRANSPORT AND LOGISTICS FIRMS

Helga Pavlić Skender
University of Rijeka, Faculty of Economics, Croatia
E-mail:
helga.pavlic.skender@efri.hr

Petra Adelajda Mirković
University of Rijeka, Faculty of Economics, Croatia
E-mail:
petra.adelajda.mirkovic@efri.hr

Vinko Zaninović
University of Rijeka, Faculty of Economics, Croatia
E-mail:
vinko.zaninovic@efri.hr

Abstract

Gibrat’s law states that growth rate of the firm is independent of firm’s size. This
paper tests Gibrat’s law on the panel data of Croatian freight transport and logistics
firms during the period from 2006 to 2015. The data from Bureau van Dijk’s Amadeus
database is used to test the Law. The sample includes 565 firms. The aim of the paper
is to analyze whether the growth of the freight transport and logistics firms in Croatia
depends of its size. The number of employees and sales of the firm are used as
independent variables, while yearly sales growth is taken as the depended variable.
In analysis is also included the age of the firm in order to control for variable other
than the size that affect the growth rate of the firm. Using econometric model (fixed
effects estimator) we find that there is statistically significant proportional connection
between size of the firms and their respective growth rates, moreover the results shows
the growth in number of employees has a positive impact on the growth rate while the
growth in sales and age of the firm have negative impact on the growth rate. It means
larger and older firms have slower growth rate. That is why the Gibrat’s law is rejected
in case of Croatian freight transport and logistics firms.

Key words: Gibrat’s law, freight transport & logistics, panel data, fixed effects

Last Update: October 26, 2017  

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October 26, 2017   245    BLMM 2017  
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