EconPapers    
Economics at your fingertips  
 

Industrial Agglomeration and Proliferation of Startup Firms in the Kyushu Region (Japanese)

Nobuaki Hamaguchi, Hideyuki Okano and Shuzo Osajima

Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: In recent years, we have noticed a proliferation of startup firms being established in Kyushu, especially in Fukuoka City. We analyze two propositions: (1) The determinants of the startup company location are the initial costs and the expected profitability; (2) The magnitude of the initial costs and the expected profitability are influenced by regional variables. In the estimation results using nationwide municipality-level data, the size of industrial agglomeration and the degree of turnover of the local population through migration improve profitability, while competitive markets, better access to finance, and the diversity of industry structure at the local level reduce the initial costs. In the case of Kyushu data, only the competitive market environment has the effect of suppressing the initial cost of startups. In Kyushu, which is located a long distance from the central markets in Kansai or Kanto, implementing policies that minimize initial costs rather than policies that increase profitability will promote startups.

Pages: 25 pages
Date: 2020-01
New Economics Papers: this item is included in nep-com and nep-ure
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/20j003.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:rdpsjp:20003

Access Statistics for this paper

More papers in Discussion Papers (Japanese) from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().

 
Page updated 2020-06-18
Handle: RePEc:eti:rdpsjp:20003