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

Author

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  • 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.

Suggested Citation

  • Akihiro Otsuka, 2008. "Determinants of new firm formation in Japan: A comparison of the manufacturing and service sectors," Economics Bulletin, AccessEcon, vol. 18(5), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-08r30002
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    File URL: http://www.accessecon.com/pubs/EB/2008/Volume18/EB-08R30002A.pdf
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    References listed on IDEAS

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    1. Timothy J. Bartik, 2010. "Small Business Start-Ups in the United States: Estimates of the Effects of Characteristics of States," Book chapters authored by Upjohn Institute researchers, in: Zolton Acs (ed.),Entrepreneurship and regional Development, pages 155-169, W.E. Upjohn Institute for Employment Research.
    2. 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.
    3. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
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    Cited by:

    1. Zheng, Liang & Zhao, Zhong, 2017. "What drives spatial clusters of entrepreneurship in China? Evidence from economic census data," China Economic Review, Elsevier, vol. 46(C), pages 229-248.
    2. Othmane FAHIM & Salma NAAMANE, 2021. "Macroeconomic Factors and Birth of New Businesses in Developing Countries: Evidence from a Dynamic System GMM Approach," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 6(1), pages 61-69, June.
    3. Nobuo Kobayashi, 2020. "A factor analysis of business start-up rates in Japan: contemporary and historical context," Discussion Paper Series 202, School of Economics, Kwansei Gakuin University.
    4. Yinhao Wu & Shumin Yu & Xiangdong Duan, 2021. "The Impact of Environmental Regulation on the Location of Pollution-Intensive Industries in China under Agglomeration Effect," IJERPH, MDPI, vol. 18(8), pages 1-14, April.
    5. Maryiam Haroon & Azam Chaudhry, 2021. "Where to Locate? The Correlation Between Spatial Proximity and Location Choice of New Firms: The Case of Pakistan," Asian Economic Journal, East Asian Economic Association, vol. 35(2), pages 187-208, June.
    6. Azam Chaudhry & Marjan Nasir & Maryiam Haroon, 2012. "The Birth of Exporters: Entry and Scale of Firms in Punjab’s Export Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 17(Special E), pages 191-212, September.
    7. Marcus Dejardin, 2010. "La création d'entreprises et ses rapports au territoire," Post-Print halshs-00618267, HAL.
    8. Dalina-Maria Andrei, 2021. "Determinants of New Companies’ Formation in Romania at Regional Level. A Fixed Effects Model (FEM) Approach," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 18-27, August.
    9. Theresa Thompson Chaudhry & Mahvish Faran, 2015. "Organization, Management, and Wage Practices in Pakistan’s Electrical Fan and Readymade Garment Sectors," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 183-204, September.
    10. Maryiam Haroon, 2013. "The Effects of Agglomeration on the Formation and Scale of Operation of New Firms," CREB Working papers 3-2013, Centre for Research in Economics and Business, The Lahore School of Economics, revised 2013.

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    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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