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Market Access, Agglomeration Economies, and New Firm Formation

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A New Perspective on Agglomeration Economies in Japan

Part of the book series: New Frontiers in Regional Science: Asian Perspectives ((NFRSASIPER,volume 20))

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Abstract

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

This chapter is based on Otsuka (2008) “Determinants of new firm formation in Japan: A comparison of the manufacturing and service sectors,” published in Economics Bulletin (Vol. 18, No. 4, pp. 1–7).

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Authors and Affiliations

  1. Association of International Arts and Science, Yokohama City University, Yokohama, Japan

    Akihiro Otsuka

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  1. Akihiro Otsuka
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Otsuka, A. (2017). Market Access, Agglomeration Economies, and New Firm Formation. In: A New Perspective on Agglomeration Economies in Japan. New Frontiers in Regional Science: Asian Perspectives, vol 20. Springer, Singapore. https://doi.org/10.1007/978-981-10-6490-6_10

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  • DOI: https://doi.org/10.1007/978-981-10-6490-6_10

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  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-10-6489-0

  • Online ISBN: 978-981-10-6490-6

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

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