EFR Empirical Brilliance in Employment Strategies: Orchestrating Firm Stature, Exquisite Labor Proficiency, and Exponential Productivity in Confluence with Discerning Leverage and Enriched FDI Share


  • Saeed Ur Rehman Assistant Professor, Department of Economics, Ghazi University, Dera Ghazi Khan, Pakistan
  • Zia Ur Rahman Lecturer, Department of Economics, Ghazi University, Dera Ghazi Khan, Pakistan




Gibrat’s law, Heterogeneity, Developing Countries, Leverage, Firm’s Growth


This study endeavors to scrutinize the veracity of Gibrat's law pertaining to the expansion of firms at the micro-level and explores the determinants of firms’ growth by employing datasets from emerging nations from 2004 to 2021. The study used panel unit root tests to scrutinize stationarity and system GMM to tackle endogeneity and unobserved heterogeneity. Overall, the findings of this study provide empirical support for Gibrat's law in the context of privatized banks in developing nations. Furthermore, the outcomes indicate that globalization and integration have posed considerable challenges for firms seeking to grow in developing countries that have implemented privatization policies. These conclusions suggest that certain elements, apart from size and sector growth, play a significant role in the evolution of a firm's growth trajectory. Nonetheless, the scope of this study is restricted to the evaluation of privatized banks in developing countries, and it does not delve into the specific methods of privatization utilized. Future research should explore diverse cohort sizes and expand the literature to address micro-level intricacies.