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A factor analysis of business start-up rates in Japan: contemporary and historical context

Nobuo Kobayashi ()
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Nobuo Kobayashi: School of Economics, Kwansei Gakuin University

No 202, Discussion Paper Series from School of Economics, Kwansei Gakuin University

Abstract: This study analyzed the factors that determined the regional business start-up rates in Japan between 2012-2014, taking into account the influence of historical regional characteristics in addition to contemporary social and economic factors. As for the industrial structure, regions where the ratio of service sectors is relatively high tend to have high start-up rates. Regarding the employment environment, unemployment tends to promote business start-ups. In addition, there was a tendency for the business start-up rate to increase with a high ratio of foreigners, but a relatively high proportion of highly educated personnel had no effect. Regarding the influence of historical characteristics on business start-up behavior, two conflicting directions were recognized. In regions focused on rice production, business start-up behavior has historically been suppressed. In contrast, in recent years there has been a tendency to promote business start-ups in areas in which the ratio of rice cultivation is high, reflecting changes in agricultural policies, such as incentives for corporations to enter agriculture and support for conversion from individual farmer to corporate management. Nobuo Kobayashi

Keywords: business start-ups; industrial structure; historical context; agriculture School of Economic (search for similar items in EconPapers)
JEL-codes: M13 O13 O18 R11 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2020-01
New Economics Papers: this item is included in nep-ure
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