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Creating firms for a new century: Determinants of firm creation around 1900

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Author Info
Baten, Joerg

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Abstract

A 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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File URL: http://journals.cambridge.org/abstract_S136149160300011X
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Publisher Info
Article provided by Cambridge University Press in its journal European Review of Economic History.

Volume (Year): 7 (2003)
Issue (Month): 03 (December)
Pages: 301-329
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Handle: RePEc:cup:ereveh:v:7:y:2003:i:03:p:301-329_00

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  1. Krugman, Paul, 1998. "Space: The Final Frontier," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 161-74, Spring. [Downloadable!] (restricted)
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  4. David Audretsch & Michael Fritsch, 1994. "The Geography of Firm Births in Germany," Regional Studies, Taylor and Francis Journals, vol. 28(4), pages 359-365, July. [Downloadable!] (restricted)
  5. Gioacchino Garofoli, 1994. "New Firm Formation and Regional Development: The Italian Case," Regional Studies, Taylor and Francis Journals, vol. 28(4), pages 381-393, July. [Downloadable!] (restricted)
  6. 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. [Downloadable!]
  7. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650592, January.
  8. Jeffrey G. Williamson, 1995. "Globalization, Convergence and History," NBER Working Papers 5259, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Audretsch, David B & Vivarelli, Marco, 1993. "New-Firm Start-ups in Italy," CEPR Discussion Papers 864, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  10. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
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  11. 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. [Downloadable!] (restricted)
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