Gibrat's Law and Port Growth

Abstract

The purpose of this paper is to examine ports growth, specifically whether or not port growth is independent of port size. It uses total exports as a measure of size and use the average as estimate of growth rate and specifically analyzes the growth rates of United States Custom's Ports. Through using various tests, the findings conclude that larger ports in the beginning of the period have higher growth rates than parts with lower total exports at the beginning of the period. The conclusion of this finding is that physical limitations inhibit a port's ability to grow, and thus larger ports have a higher growth rate than smaller ports.