Market Size and Entrepreneurship

Yasuhiro Sato, Takatoshi Tabuchi and Kazuhiro Yamamoto

No 09-07, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

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.

Keywords: market size; entrepreneurship; density economies; market expansion (search for similar items in EconPapers)
JEL-codes: J62 L26 R12 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2009-02
New Economics Papers: this item is included in nep-ent and nep-geo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www2.econ.osaka-u.ac.jp/library/global/dp/0907.pdf (application/pdf)

Related works:
Journal Article: Market size and entrepreneurship (2012)
Working Paper: Market Size and Entrepreneurship (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:0907

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