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Productivity Dynamics in Japan and the Negative Exit Effect

Kenta Ikeuchi, YoungGak Kim, Hyeog Ug Kwon, Kyoji Fukao and 京司 深尾

No DP20-001, SSPJ Discussion Paper Series from Service Sector Productivity in Japan: Determinants and Policies, Institute of Economic Research, Hitotsubashi University

Abstract: We conducted an analysis of productivity dynamics using the microdata of the Credit Risk Database (CRD), the Establishment and Enterprise Census and the Economic Census. We found that the negative exit effect in Japan is driven by the exit of some highly productive firms. This finding suggests that to reduce the negative exit effect policies to support SMEs should not be based on their size but by focusing on SMEs with high TFP that are actively investing.

Keywords: Productivity dynamics; TFP; Labor Productivity (search for similar items in EconPapers)
JEL-codes: O47 O53 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2020-04
New Economics Papers: this item is included in nep-ent
Note: This study is conducted as part of the “East Asian Industrial Productivity”project undertaken at the Research Institute ofEconomy, Trade and Industry (RIETI) and is commissioned by the Small and Medium Enterprise Agency “Empirical analysis on metabolism of small and medium entreprises”.
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Citations: View citations in EconPapers (1)

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Journal Article: Productivity dynamics in Japan and the negative exit effect (2022) Downloads
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