Heinrich, Torsten and Dai, Shuanping (2014): Diversity of Firm Sizes, Complexity, and Industry Structure in the Chinese Economy.

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Abstract
Among the phenomena in economics that are not yet wellunderstood is the fattailed (powerlaw) distribution of firm sizes in the world's economies. Different mechanisms suggested in the literature to explain this distribution of firm sizes are discussed in the present paper. The paper uses the China Industrial Enterprises Database to study the distribution (firm size in terms of the number of employees, capital, and gross profit) for the provinces of China for the years 19982008. We estimate the powerlaw distribution and confirm its plausibility using the KS test and the loglikelihood ratio vs. lognormal and exponential distributions. The analysis on regional levels allows an assessment of regional effects on differences in the distribution; we discuss possible explanations for the observed patterns in the light of the recent regional economic development in the PRC.
Item Type:  MPRA Paper 

Original Title:  Diversity of Firm Sizes, Complexity, and Industry Structure in the Chinese Economy 
Language:  English 
Keywords:  Firm size distribution; Evolutionary industry dynamics; Powerlaw distribution; China 
Subjects:  C  Mathematical and Quantitative Methods > C1  Econometric and Statistical Methods and Methodology: General > C14  Semiparametric and Nonparametric Methods: General C  Mathematical and Quantitative Methods > C4  Econometric and Statistical Methods: Special Topics > C46  Specific Distributions ; Specific Statistics L  Industrial Organization > L1  Market Structure, Firm Strategy, and Market Performance > L11  Production, Pricing, and Market Structure ; Size Distribution of Firms N  Economic History > N1  Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N15  Asia including Middle East 
Item ID:  67630 
Depositing User:  Dr. Torsten Heinrich 
Date Deposited:  04. Nov 2015 14:40 
Last Modified:  08. Nov 2015 06:01 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/67630 