LARGEST BRAZILIAN COMPANIES IN THE PERIOD 2003-2010: ANALYSIS UNDER THE LIGHT OF THE ZIPF'S LAW

Authors

  • Wellington Ribeiro Justo Universidade Regional do Cariri (URCA)
  • Katsuk Rodrigues Sousa URCA

DOI:

https://doi.org/10.5902/1414650916187

Keywords:

Zipf's Law, Panel data, Industrial Organization.

Abstract

In certain situations, the theory cannot be empirically tested due to the lack of mathematical formalism, lack of empirical or even the lack of data models. Moreover an empirical regularity that has lacked a theory to support that is the law of order size. Recently theories in many areas began to support this empirical regularity one being in the field of industrial organization. This study explores this literature and tests the Zipf's Law distribution of the ranking of the largest Brazilian companies for the period 2003-2010 with panel data. The results suggest that the hypothesis of Zipf's Law is only accepted when the number of firms in the sample is small. As the number of firms increases the results indicate that smaller firms grow faster than larger indicating convergence in size of them.

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Author Biographies

Wellington Ribeiro Justo, Universidade Regional do Cariri (URCA)

Engenheiro Agrônomo (UFRPE)

Economista (URCA)

Mestrado em Economia Rural (UFC)

Doutor em Economia (PIMES-UFPE)

Professor Associado do Curso de Economia da URCA. Professor da Pós Graduação em Gestão Financeira, Desenvolvimento Regional, Economia de Empresas, Gestão Hospitalar entre outros.Leciona/ou as disciplinas: Análise de Investimento, Econometria, Economia Internacional, Microeconomia, Macroeconomia, Economia Regional, Economia Intenacional, Finanças Empresariais, Matemática Financeira, Gestão Financeira.

Professor do Mestrado em Economia (UFPE-PPGE-CAA)

Katsuk Rodrigues Sousa, URCA

Economista (URCA)

Especialista em Administração Financeira (URCA)

 

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Published

2015-01-21

How to Cite

Justo, W. R., & Sousa, K. R. (2015). LARGEST BRAZILIAN COMPANIES IN THE PERIOD 2003-2010: ANALYSIS UNDER THE LIGHT OF THE ZIPF’S LAW. Economia E Desenvolvimento, 26(2). https://doi.org/10.5902/1414650916187

Issue

V. 26, n. 2, jul./dez. 2014

Section

Articles

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