Generalising Gibrat: Using Chinese evidence founded on fieldwork

Gavin C Reid, Zhibin Xu

    Research output: Contribution to journalArticlepeer-review

    9 Citations (Scopus)

    Abstract

    This paper reports on determinants of small firm growth and survival, using fieldwork evidence collected by face-to-face and telephone interviews. It extends the 'basic' size-age model to a 'comprehensive' growth model with two types of additional explanatory variables: firm specific; and business environmental. Estimation is by log-linear regression on Chinese cross-section data, with corrections for sample selection bias and heteroskedasticity. Our results from the comprehensive model highlight the importance of location choice and customer orientation for the growth of Chinese private firms.

    Keywords: models of small firm growth, choice of location, customer orientation, Chinese private firms

    JEL Codes: D21, M13, L25, L26
    Original languageEnglish
    Pages (from-to)1017-1029
    Number of pages12
    JournalSmall Business Economics
    Volume39
    Issue number4
    Early online date5 Apr 2011
    DOIs
    Publication statusPublished - Nov 2012

    Keywords

    • models of small firm growth, choice of location, customer orientation, Chinese private firms

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