The Evolution of the Firm Size Distribution and Nationality of Ownership
CORE Discussion Paper No. 2004/22
11 Pages Posted: 31 Mar 2007
Date Written: May 2004
It has recently been shown that the firm size distribution is initially skewed to the right and then evolves over time to become more log-normal, and argued that this is likely due to firms initially facing financial constraints, see Cabral and Mata (2003). We conjecture that, it this is true, then such a pattern should be much less apparent for multinational companies for which financial constraints arer generally considered to be lower than non-multinationals. Moreover, such a difference may be re-enforced by the fact that multinationals are less likely to face selection issues. These propositions are confirmed using plant level Irish manufacturing data.
Keywords: firm size distribution, national of ownership, financial constraints
JEL Classification: F23, L11, L60
Suggested Citation: Suggested Citation