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Gibrat’s law for countries

González-Val, Rafael and Sanso-Navarro, Marcos (2009): Gibrat’s law for countries.

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Abstract

A re-assessment of Gibrat's Law in the context of country size is carried out in this paper. In addition, how similarly population is distributed in cities and countries is analyzed from a temporal perspective. Although evidence of Gibrat's Law is found, it is weaker than that previously established in Rose (2006). This is due to the methodology applied and is especially appreciable in very small countries. Nonetheless, we observe that the population growth process in countries is similar to that of cities. As a result, the similarities between how the population is distributed in these two geographical categories have increased over time.

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