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Urban Studies, Vol. 28, No. 4, 635-639 (1991)
DOI: 10.1080/00420989120080701
© 1991 Urban Studies Journal Limited

Gibrat's Law and the Growth of Canadian Cities

J. Stephen Clark

Departments of Economics and Agricultural Economics

Jack C. Stabler

University of Saskafchewan, Saskatoon, Saskatchewan S7N OWO. Canada

This paper tests for the existence of diseconomies of size for Canadian cities using Gibrat's Law. If diseconomies of size are not present, then the growth rate of cities is shown to contain a unit root. Therefore, testing for Gibrat's Law is equivalent to testing for unit roots commonly found in the time series literature. Our tests indicate that Gibrat's Law cannot be rejected for the seven largest Canadian cities.


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