Furthermore genda 1998 shows that job creation as

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Unformatted text preview: ew businesses. The evidence does not entirely support this view. Whittaker (1994) asks whether new players can enter the major corporations league in Japan and answers unambiguously that they can, despite undeniable barriers. Whittaker identified these small and medium-sized firms as a likely source of growth, and similar cautious optimism is borne out by Imai and Kawagoe in this issue. Furthermore, Genda (1998) shows that job creation (as well as destruction) between 1991 and 1995 was highly concentrated in small firms in contrast to the United States and Britain. This sector, in other words, appears to be vigorous despite the barriers. But even if we could discern a lack of new firms in new industries, would it matter? There is some evidence that it would not. Wolff (2000) shows that Japan’s low output and low productivity growth is not the result of specializing in the ‘wrong industries’. Performance would not have been better if the country had shifted its industrial structure in the direction of either Germany or the United States. Poor performance from 1991 to 1995 resulted not from a failure to move into high-tech sectors, but from...
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This note was uploaded on 02/03/2014 for the course ECON 204 taught by Professor Devero during the Summer '13 term at American University of Sharjah.

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