The evolution of the distribution of plant size: Evidence from Luxemburg

Bertinelli L., Cardi O., Pamukcu T., Strobl E.

SMALL BUSINESS ECONOMICS, vol.27, pp.301-311, 2006 (SSCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 27
  • Publication Date: 2006
  • Doi Number: 10.1007/s11187-005-8571-z
  • Journal Name: SMALL BUSINESS ECONOMICS
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.301-311
  • Keywords: financial constraints, plant size distribution, GROWTH
  • Middle East Technical University Affiliated: Yes

Abstract

In a recent paper, [Cabral, L. M. B. and J. Mata, 2003, American Economic Review, 93, 1075-1090] using Portuguese manufacturing data have shown for the first time that the plant size distribution is significantly right-skewed at the early part of the life cycle and then changes to become more log-normal. Using a similar proxy for plant age we compare this stylised fact for both Luxembourg manufacturing and services. Use of plants' true age, however, reveals that the size distribution reverses back towards right-skewness for very old plants. We confirm the finding that the right-skewness is likely driven by financial constraints.