The aim of this paper is to indicate the general tendencies of relation between the city size and the change of establishments in view of the opening rate, closing rate and growth rate of establishments in Japan from 1991 to 1996. The main results are as follows.
(1) As concerns the opening rate, the logarithmic transformation for opening rate can be expressed as the quadratic, convex function of the logarithmic transformation for city size (population), in all four industries (total, manufacturing, wholesale-retail, and service industries). We reach maximum of opening rate at 263 thousand of inhabitants in manufacturing, and 500~700 thousand of inhabitants in the other three industries.
(2) As concerns the closing rate, the logarithmic transformation for closing rate can be expressed as the quadratic, concave function of the logarithmic transformation for city size (population) in case of manufacturing industry, while the linear function (with positive slope) of the logarithmic transformation for city size in the other three industries.
(3) As concerns the growth rate, the growth rate can be expressed as the convex function of the city size (population), in all four industries. We reach maximum of growth rate at 150~300 thousand of inhabitants.