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Determinants of new firm formation in Japan: A comparison of the manufacturing and service sectors

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Author Info
Akihiro Otsuka () (Socio-Economic Research Center, Central Research Institute of Electric Power Industry)
Abstract

This paper analyzes the determinants of regional variations in new firm formation by industry, using the data of 47 prefectures in Japan. The results of this paper reveal the following evidences: (1) market access is the factor that promotes new firm formation in all industries, though the impact on new firm formation is greater in the service sectors than in the manufacturing sectors; (2) the industrial agglomeration contributes to stimulating new firm formation in the manufacturing sectors; and (3) while average wage is an important factor in the manufacturing sectors, it is not significant in the service sectors.

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File URL: http://economicsbulletin.vanderbilt.edu/2008/volume18/EB-08R30002A.pdf
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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 18 (2008)
Issue (Month): 5 ()
Pages: 1-7
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Handle: RePEc:ebl:ecbull:v:18:y:2008:i:5:p:1-7

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Related research
Keywords: New Firm Formation; Regional Variation; Agglomeration Economies;

Find related papers by JEL classification:
R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location
R0 - Urban, Rural, and Regional Economics - - General

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March. [Downloadable!] (restricted)
    Other versions:
  2. David Audretsch & Michael Fritsch, 1994. "The Geography of Firm Births in Germany," Regional Studies, Taylor and Francis Journals, vol. 28(4), pages 359-365, July. [Downloadable!] (restricted)
  3. Catherine Armington & Zoltan J. Acs, 2002. "The Determinants of Regional Variation in New Firm Formation," Regional Studies, Taylor and Francis Journals, vol. 36(1), pages 33-45, February. [Downloadable!] (restricted)
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This page was last updated on 2009-11-16.

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