Creating firms for a new century: Determinants of firm creation around 1900
AbstractA rapidly growing literature in industrial economics and regional economics uses data sets of individual firms or regional firm creation rates to answer the central question: what makes entrepreneurs? Which factors encourage some people to set up their own business and create jobs, and what prevents potential entrepreneurs from doing so? This contribution explores the determinants of regional differences in firm creation rates by using a new data set of 4,036 individual firms from Southwest Germany around 1900. Agglomeration effects and earlier firm creations stimulate current firm creation. In addition, a small and medium firm environment allows the formation of specific human capital another favourable factor for a dynamic firm creation process in some regions.
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Bibliographic InfoArticle provided by Cambridge University Press in its journal European Review of Economic History.
Volume (Year): 7 (2003)
Issue (Month): 03 (December)
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Other versions of this item:
- Jörg Baten, 2003. "Creating Firms for a New Century: Determinants of Firm Creation around 1900," CESifo Working Paper Series 1065, CESifo Group Munich.
- Joerg Baten, 2003. "Creating Firms for a New Century: Determinants for Firm Creation around 1900," IAW Discussion Papers 11, Institut für Angewandte Wirtschaftsforschung (IAW).
- L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- de Vries, Jan, 1994. "The Industrial Revolution and the Industrious Revolution," The Journal of Economic History, Cambridge University Press, vol. 54(02), pages 249-270, June.
- David Audretsch & Michael Fritsch, 1999. "The Industry Component of Regional New Firm Formation Processes," Review of Industrial Organization, Springer, vol. 15(3), pages 239-252, November.
- Paul Krugman, 1998. "Space: The Final Frontier," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 161-174, Spring.
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