Firm dynamics of international joint ventures in Shanghai's manufacturing sector: Testing the validity of Gibrat's Law
Document Type
Journal article
Source Publication
Journal of Applied Business Research
Publication Date
1996
Volume
12
Issue
4
First Page
20
Last Page
27
Abstract
How joint ventures (JV) grow over time has important implications on government JV policies and enterprises' decisions in JV formation. A paper studies JVs in the manufacturing industries of Shanghai by analyzing the empirical relationship between the size of JVs with their growth over time. Whether Gibrat's Law can describe the dynamic behavior of JVs is tested by using the panel data of 4 Shanghai industries from 1989 to 1992. Two empirical results are obtained: 1. Small JVs are better in creating jobs than large JVs. 2. In terms of output growth, both small and large JVs follow a simple stochastic growth process which is more or less dictated by the Gibrat's Law.
DOI
10.19030/jabr.v12i4.5781
Print ISSN
08927626
Publisher Statement
Copyright Journal of Applied Business Research Fall 1996
Access to external full text or publisher's version may require subscription.Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Chow, C.K.W., & Fung, M.K.Y. (1996). Firm dynamics of international joint ventures in Shanghai's manufacturing sector: Testing the validity of Gibrat's law. Journal of Applied Business Research, 12(4), 20-27.