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Entrepreneurship across time and space: empirical evidence from Korea

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  • Eunsuk Hong
  • In Lee
  • Laixiang Sun
  • Richard Harrison

Abstract

This paper investigates the temporal and spatial dynamics of business start-up activities and their determinants. It integrates three perspectives in explaining regional variations in start-ups: (1) spatial heterogeneity that characterizes regional differences in promoting or conditioning start-up activities, (2) temporal dependence that features a self-augmenting and self-reinforcing effect of start-up activities, and (3) spatial dependence that portrays inter-regional interaction of start-up activities across proximate regions. A spatial dynamic panel modeling analysis of the determinants of new manufacturing ventures created in subnational regions of South Korea confirms that, in addition to the importance of regional characteristics, both temporal and spatial dependences of start-up activities are simultaneously in force and play statistically significant roles. To address the joint endogeneity issue of temporal and spatial dependences, we employ the system GMM estimator, which leads to much improved explanation of inter-regional variations in firm creation activities. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Eunsuk Hong & In Lee & Laixiang Sun & Richard Harrison, 2015. "Entrepreneurship across time and space: empirical evidence from Korea," Small Business Economics, Springer, vol. 44(3), pages 705-719, March.
    • Handle: RePEc:kap:sbusec:v:44:y:2015:i:3:p:705-719
    DOI: 10.1007/s11187-014-9613-1
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    3. José Alberto Martínez-González & Urszula Kobylinska & Francisco J. García-Rodríguez & Lukasz Nazarko, 2019. "Antecedents of Entrepreneurial Intention among Young People: Model and Regional Evidence," Sustainability, MDPI, vol. 11(24), pages 1-29, December.
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    More about this item

    Keywords

    Spatial dependence; Temporal dynamics; New firm creation; Spatial dynamic panel; Economic geography; Korea; M13; L26; C18;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General

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