nep-ent New Economics Papers
on Entrepreneurship
Issue of 2005‒01‒16
four papers chosen by
Marcus Dejardin
Facultés Universitaires Notre-Dame de la Paix

  1. Finance, Firm Size, and Growth By Thorsten Beck; Asli Demirgüç-Kunt; Luc Laeven; Ross Levine
  2. History friendly simulations for modelling industrial dynamics By Garavaglia, C.
  3. Market Dynamics and Productivity in Japanese Retail Industry in the late 1990's By Toshiyuki Matsuura; Kazuyuki Motohashi
  4. Heterogeneous preferences and new innovation cycles in mature industries: the camera industry 1955-1974 By Paul Windrum

  1. By: Thorsten Beck (World Bank); Asli Demirgüç-Kunt (World Bank); Luc Laeven (World Bank); Ross Levine (World Bank)
    Abstract: The authors examine whether financial development boosts the growth of small firms more than large firms and hence provides information on the mechanisms through which financial development fosters aggregate economic growth. They define an industry’s technological firm size as the firm size implied by industrial specific production technologies, including capital intensities and scale economies. Using cross-industry, cross-country data, the results indicate that financial development exerts a disproportionately large effect on the growth of industries that are technologically more dependent on small firms. This suggests that financial development accelerates economic growth by removing growth constraints on small firms and also implies that financial development has sectoral as well as aggregate growth ramifications. This paper—a product of the Finance Group, Development Research Group—is part of a larger effort in the group to understand the growth finance link.
    Keywords: Domestic Finance; Macroecon & Growth
    Date: 2005–01–12
  2. By: Garavaglia, C. (CESPRI, Bocconi University, Milan, Italy and Cattaneo University, LIUC, Castellanza (VA), Italy)
    Keywords: simulation, models, industrial dynamics
    Date: 2004
  3. By: Toshiyuki Matsuura; Kazuyuki Motohashi
    Abstract: This study is a first attempt of shedding a light on market dynamics in Japanese retail industry at establishment level using micro dataset from census survey. Entry and exit of establishment and its impact on productivity is investigated by using Retail and Wholesale Census by METI in 1997 and 2002. It is found that a substantial number of gross turn over of establishments, as well as employment reallocation associated with it. This market dynamics of retail industry contributes to aggregated productivity growth.
    Date: 2005–01
  4. By: Paul Windrum
    Abstract: The paper examines the innovation dynamics of the mature camera market between 1955 and 1974. This highlights the importance of heterogeneous preferences in determining industry structure. By recognising and accommodating consumer heterogeneity, new firms engaged in radical product and process innovation and overcame the first-mover advantages of dominant firms. The case raises important issues for our understanding of industry life cycles. First, a number of innovation cycles are possible over the life cycle. Second, new rounds of entry, exist and market shake-out can occur, with new, innovative entrants displacing old firms. If the new firms are in developing countries then a shift in global production occurs. Third, a basic tenet of Porterian competitive advantage is overturned because success is based on innovation not wage-cost advantages. Fourth, market structure can change, the industry dividing into a number of market niches that contain distinct user groups. Fifth, incremental modular innovations may be adopted by some user groups but not by others. Consequently, incremental product innovations may be adopted in low-priced goods but not in high-priced goods.
    Keywords: industry life cycle, innovation, heterogeneous preferences, cameras, photography
    JEL: L10 L60
    Date: 2004–12

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