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Determinants of Small Business Presence in Japanese and UK Manufacturing

Author

Listed:
  • Noriyuki Doi

    (School of Economics, Kwansei Gakuin University)

  • Marc Cowling

    (Warwick Business School, University of Warwick)

Abstract

The present paper has attempted to examine determinants of small business(SMEs) presence in Japanese and UK manufacturing industries, using a cross-industry model. The results suggest that market structure elements have a definite influence on SMEs' share. This conclusion is consistent with the findings observed in the US and other European countries. The main results here are the following; (1) Concentration is negatively related to SMEs' share. (2) Capital intensity and requirements have a negative influence. (3) Scale economies have a negative association with SMEs f share. (4) R&D provides disadvantages for SMEs. (5) The above results are found for both the countries. But, advertising shows a different result between the countries; it has a negative effect in the UK, while it has no effect in Japan. (6) Also, both industry size and growth have a different relationship between the countries. These factors have a significant effect in the UK. but the former has a negative effect, while the latter has a positive effect. On the other hand, these factors have no discernible effect in Japan. (7) The subcontracting has no definite influence on SMEs' share in Japan,

Suggested Citation

  • Noriyuki Doi & Marc Cowling, 1995. "Determinants of Small Business Presence in Japanese and UK Manufacturing," Discussion Paper Series 08, School of Economics, Kwansei Gakuin University, revised 1995.
    • Handle: RePEc:kgu:wpaper:08
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    File URL: http://192.218.163.163/RePEc/pdf/kgdp08.pdf
    File Function: First version, 1995
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    References listed on IDEAS

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    1. Salop, Steven C & Scheffman, David T, 1983. "Raising Rivals' Costs," American Economic Review, American Economic Association, vol. 73(2), pages 267-271, May.
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    Cited by:

    1. Noriyuki Doi, 1996. "R&D Strategy-Makings in Japanese Large Firms: Evidence from Questionnaire Survey," Discussion Paper Series 10, School of Economics, Kwansei Gakuin University, revised Apr 1996.

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