2001/08 LEM Working Paper Series

Corporate Growth and Industrial Structure. Some Evidence from the Italian Manufacturing Industry
Bottazzi G., Cefis E., Dosi G.
Firm Size Distribution; Firm Growth; Gibrat Law; Fat Tails; Productivity; Market Selection.

  JEL Classification
L11; D21; C14; O30.

The work analyses the properties of corporate growth in a large longitudinal sample of Italian manufacturing firms. In particular, it focuses on the study of the statistical properties of growths rates and on the influence of proxies fro relative efficiency upon relative growth. In line with Bottazzi et al. (2001), the emergence of "fat tails" in growth rates distribution and the idiosyncratic nature of autocorrelation coefficients confirm the existence of a structure in the growth process richer then the one normally assumed by the "Gibrat Law" hypothesis and suggest the presence of firm-specific drivers of growth. At the same time, one finds remarkable puzzles concerning the absence of any negative relationship between size and growth variance and only weak influences of relative efficiencies upon growth dynamics.

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