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The factors determining firm start-ups in French regions and the heterogeneity of regional labor markets

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  • Marie-Estelle Binet
  • François Facchini

Abstract

This paper investigates the determinants of business start-ups in the 22 French regions, considering four different sectors (industry, real estate, trade and services) over 1995–2004. The main innovation of the paper was to analyze regional differences in the decision to start a new business on a sector basis. Using spatial statistics and dynamic panel data methods, we estimate spatial regimes models. First, we show that regional factors determining new firm start-ups differ between sectors. Second, the estimation results are consistent with the existence of spatial heterogeneity. Finally, we observe persistence in start-up rates. Copyright Springer-Verlag Berlin Heidelberg 2015

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  • Marie-Estelle Binet & François Facchini, 2015. "The factors determining firm start-ups in French regions and the heterogeneity of regional labor markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 251-268, January.
    • Handle: RePEc:spr:anresc:v:54:y:2015:i:1:p:251-268
    DOI: 10.1007/s00168-014-0653-x
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    Cited by:

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    2. Nobuo Kobayashi, 2020. "A factor analysis of business start-up rates in Japan: contemporary and historical context," Discussion Paper Series 202, School of Economics, Kwansei Gakuin University.
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    4. Mats Håkan Wilhelmsson, 2017. "The effect of house prices on business start-ups: A review and analysis using Swedish regional data," REGION, European Regional Science Association, vol. 4, pages 1-16.
    5. Miao, Shuchao & Chi, Jing & Liao, Jing & Qian, Long, 2021. "How does religious belief promote farmer entrepreneurship in rural China?," Economic Modelling, Elsevier, vol. 97(C), pages 95-104.

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    More about this item

    Keywords

    J21; M13; O18;
    All these keywords.

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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