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Urban Studies, Vol. 41, No. 8, 1537-1549 (2004)
DOI: 10.1080/0042098042000226993

Gibrat's Law and the Growth of Cities in Brazil: A Panel Data Investigation

Marcelo Resende

Instituto de Economia, Universidade Federal do Rio de Janeiro, Av. Pasteur 250, Urca, 22290-240, Rio de Janeiro-RJ, Brazil, mresende{at}ie.ufrj.br

The paper builds on the results of Clark and Stabler who associated Gibrat's law on the independence of growth rate and city size with unit root tests. The paper proposes a direct test of the unit root hypothesis for firm size based on recently developed panel data unit root tests. The results for a sample of Brazilian cities over the period 1980-2000 favour Gibrat's law. Moreover, the results are robust when one considers sub-samples defined for different population sizes and age of municipality.


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