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Effects of New Business Formation on Regional Development over Time

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Author Info
Michael Fritsch
Pamela Mueller

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Abstract

Fritsch M. and Mueller P. (2004) Effects of new business formation on regional development over time, Regional Studies 38 , 961-975. In the analysis of the impact of new business formation on regional employment change, considerable time lags were identified. The structure and extent of these time lags were investigated by applying the Almon lag model and it was found that new firms can have both a positive and a negative effect on regional employment. The results indicate that the indirect effects of new business formation (crowding out of competitors, improvement of supply conditions and improved competitiveness) are of greater magnitude than the direct effect, i.e. the jobs created in the new entities. The peak of the positive impact of new businesses on regional development is reached about 8 years after entry. Fritsch M. et Mueller P. (2004) Les effets temporels de la création d'entreprise sur l'aménagement du territoire, Regional Studies 38 , 961-975. Cette analyse des effets de la création d'entreprise sur l'aménagement du terriotire identifie d'importants décalages dans le temps. On examine la structure et la portée de ces décalages en appliquant le modèle Almon. Il s'avère que les nouvelles entreprises font preuves d'effets postifs et négatifs sur l'emploi régional. Les résultats portent à croire que les effets indirects de la création d'entreprise (l'éviction des concurrents, l'amélioration des conditions de l'offre, et une compétitivité accrue) sont d'une plus grande importance que ne l'est l'effet direct, c'est à dire les emplois créés dans les nouveaux établissements. L'effet positif des nouvelles entreprises sur l'aménagement du territoire touche à son maximum environ huit années après la création de celles-là. Fritsch M. und Mueller P. (2004) Der Einfluss von Gründungsprozessen auf die Regionalentwicklung im Zeitablauf, Regional Studies 38 , 961-975. Für den Einfluss von Gründungsaktivitäten auf die Regionalentwicklung lassen sich erhebliche Zeitverzögerungen feststellen. Wir analysieren das Ausmaß und die Struktur dieser Zeitverzögerungen mit dem Almon-Lag Verfahren. Die Ergebnisse zeigen, dass Gründungen sowohl einen positiven als auch einen negativen Einfluss auf das Beschäftigungsniveau haben können. Allgemein scheinen die indirekten Effekte des Gründungsgeschehens (Verdrängung etablierter Konkurrenten, Verbesserung des Angebots und gesteigerte Wettbewerbsfähigkeit) stärker ausgeprägt zu sein als der direkte Effekt, gemessen als die in den neuen Firmen entstandenen Arbeitsplätze. Das Maximum des positiven Einflusses der Gründungen auf die Regionalenwicklung wird nach ca. acht Jahren erreicht. Fritsch M. y Mueller P. (2004) Los efectos de la formación de nuevas empresas en el desarrollo regional a lo largo del tiempo, Regional Studies 38 , 961-975. En el análisis del impacto de la formación de nuevas empresas sobre la variación en el empleo regional se identifican retardos temporales considerables. Nosostros investigamos la estructura y el grado de estos retardos mediante la aplicación del modelo de retardos de Almon y encontramos que las nuevas empresas pueden tener tanto un efecto positivo como negativo en el empleo regional. Los resultados indican que los efectos indirectos de la formación de nuevas empresas (desplazamiento de competidores, mejora de las condiciones de oferta y mejora de la competitividad) son de una magnitud mayor que el efecto directo, es decir, los empleos que se crean en las nuevas entidades. El impacto positivo de las nuevas empresas en el desarrollo regional alcanza su nivel más alto unos ocho años después de su entrada.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 38 (2004)
Issue (Month): 8 (January)
Pages: 961-975
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Handle: RePEc:taf:regstd:v:38:y:2004:i:8:p:961-975

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Related research
Keywords: Regional growth; New businesses; Entrepreneurship; Time lags;

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