The efficiency of small manufacturing firms in Japan |
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Authors: | Noriyuki Doi |
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Institution: | (1) Department of Economics, Kwansei Gakuin University, 662 Nishinomiya, Japan |
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Abstract: | It has been suggested that market structure will have an impact on within-industry differentials in efficiency, or cost disadvantages of small firms. To test this hypothesis, this paper examines the effects of market structure on the productivity (relative to industry productivity) of small manufacturing firms in Japan. The results show that market structure elements such as concentration and capital requirements work to the disadvantage of small-firm efficiency. The findings provide support for the hypothesis. |
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