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Market Size and Entrepreneurship

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Author Info

  • Yasuhiro Sato

    ()
    (Graduate School of Economics, Osaka University (Japan))

  • Takatoshi Tabuchi

    ()
    (Faculty of Economics, University of Tokyo (Japan))

  • Kazuhiro Yamamoto

    ()
    (Graduate School of Economics, Osaka University (Japan))

Abstract

In order to examine the impacts of market size on entrepreneurship, we estimate a monopolistic competition model that involves entrepreneurial decision by using data on Japanese prefectures. Our results show that a larger market size measured by the population density leads to higher incentive of people to become entrepreneurs. a 10 percent increase in the population density increases the share of people who wish to become entrepreneurs by 2 percent. In contrast, the self-employment ratio is lower in prefectures with higher population density, which suggests that the market size has different impacts on the entrepreneurship in different stages.

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File URL: http://www2.econ.osaka-u.ac.jp/library/global/dp/0907.pdf
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Bibliographic Info

Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 09-07.

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Length: 30 pages
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:osk:wpaper:0907

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Web page: http://www.econ.osaka-u.ac.jp/
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Keywords: market size; entrepreneurship; density economies; market expansion;

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References

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Citations

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Cited by:
  1. Yasuhiro Sato & Takatoshi Tabuchi & Kazuhiro Yamamoto, 2012. "Market size and entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 12(6), pages 1139-1166, November.
  2. Pokrovsky Dmitry & Behrens Kristian & Zhelobodko Evgeny, 2014. "Market Size, Entrepreneurship, and Income Inequality," EERC Working Paper Series 14/01e, EERC Research Network, Russia and CIS.
  3. Elisabeth Bublitz & Michael Fritsch & Michael Wyrwich, 2013. "Balanced Skills and the City: An Analysis of the Relationship between Entrepreneurial Skill Balance, Thickness and Innovation," Jena Economic Research Papers 2013-010, Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics.

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