Firm Dynamics and Changes in Firm Size Distribution: Non-parametric analysis of the effects of technological and other conditions (Japanese)
AbstractWe present an empirical analysis of changes in firm size distribution (FSD), using micro-data for Japanese firms. Two major viewpoints are adopted for the analysis. One is how FSD changes in response to firm dynamics, namely, firm exit and growth. The other is how economic conditions such as financial constraints and technological conditions influence changes in FSD. Non-parametric analysis reveals that economic constraints have different impacts on FSD, even when there seems to be little effect on the total change of distribution. Relaxing financial constraints or increasing minimum efficient scale (MES) attenuate the changes in FSD through exits, but also enhance changes due to growth. These two effects therefore partially cancel out, reducing the overall impact on FSD. On the other hand, the trade ratio significantly affects FSD, because the effects of exit and growth act in the same direction. The relative impact of exit and growth on FSD also differs depending on firm attributes, such as number of years of operation. This result suggests that further empirical analysis using more comprehensive and multifaceted data is needed for studying the effects of economic conditions, such as financial constraints, on changes in firm size distribution.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion Papers (Japanese) with number 11041.
Length: 26 pages
Date of creation: Mar 2011
Date of revision:
Contact details of provider:
Postal: 11th floor, Annex, Ministry of Economy, Trade and Industry (METI) 1-3-1, Kasumigaseki Chiyoda-ku, Tokyo, 100-8901
Web page: http://www.rieti.go.jp/
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-06-04 (All new papers)
- NEP-BEC-2011-06-04 (Business Economics)
- NEP-TID-2011-06-04 (Technology & Industrial Dynamics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statistics
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (NUKATANI Sorahiko).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.