Abstract

MIRALLES QUIROS, María del Mar; MIRALLES QUIROS, José Luis  and  DAZA IZQUIERDO, Julio. Technology Companies and Public Policy for Regional Development in Brazil. Prob. Des [online]. 2017, vol.48, n.190, pp.61-82. ISSN 0301-7036.

This study aims to analyze the growth of technology companies in Brazil in 2002-2013. To do so, we use Gibrat’s law, otherwise known as the Law of Proportionate Effect (LPE) and the panel data model, which allows us to control unobservable heterogeneity. However, unlike the previous empirical evidence, this study takes into account the effect of the recent financial crisis and profitability on business growth. The main results show that in times of crisis, public policies could a lot some resources available to help some of the smaller, more profitable, and least indebted technology companies to boost economic growth.

Keywords : Gibrat's law; panel data; business growth; economic crisis; technology companies; public policy.