IDEAS home Printed from https://ideas.repec.org/a/taf/regstd/v45y2011i6p773-789.html
   My bibliography  Save this article

Spatially Varying Relationships of New Firm Formation in the United States

Author

Listed:
  • Shaoming Cheng
  • Huaqun Li

Abstract

Cheng S. and Li H. Spatially varying relationships of new firm formation in the United States, Regional Studies. This paper seeks to examine spatially varying relationships between new firm formation and its determinants across US counties. A geographically weighted regression (GWR) technique is calibrated with firm birth data in ten separate industries over the period 2001-2003. Results of GWR analysis support the existence of spatially varying relationships and show significant local variations, in magnitudes and/or signs, of new business creation in all the ten sectors investigated. The local variations were masked in traditional ordinary least-squares (OLS) global analysis. This paper is also intended to inform policy-makers and professionals about location-specific relationships and reject 'one-size-fits-all' public policies. [image omitted] Cheng S. et Li H. La variation geographique des rapports de la creation des nouvelles entreprises aux Etats-Unis, Regional Studies. Cet article cherche a examiner la variation geographique des rapports entre la creation des nouvelles entreprises et ses determinants a travers les comtes des Etats-Unis. Une technique de regression geographiquement ponderee est calibree avec des donnees sur la creation d'entreprise pour ce qui est de dix industries differentes entre 2001 et 2003. Les resultats de l'analyse confirment la presence des rapports qui varient suivant l'emplacement geographique et qui demontrent des variations de la creation d'entreprise dans tous les dix secteurs examines, a la fois en importance et/ou en signes. Pour ce qui concerne la methode des moindres carres, les variations locales etaient voiles. Cet article cherche aussi a informer les decideurs et les professionnels des rapports specifiques a un endroit donne et a repousser des politiques 'uniformes'. Esprit d'entreprise Creation d'entreprise Heterogeneite geographique Regression geographiquement ponderee Cheng S. und Li H. Raumlich variable Beziehungen von Firmengrundungen in den USA, Regional Studies. In diesem Beitrag untersuchen wir raumlich variable Beziehungen zwischen Firmengrundungen und ihren Determinanten in verschiedenen Bezirken der USA. Anhand der Daten von Firmengrundungen in zehn verschiedenen Branchen im Zeitraum von 2001 bis 2003 wird eine geografisch gewichtete Regression (GWR) kalibriert. Die Ergebnisse der GWR-Analyse sprechen fur die Existenz von raumlich variablen Beziehungen und weisen in allen zehn untersuchten Sektoren hinsichtlich des Umfangs und/oder der Anzeichen von Firmengrundungen signifikante lokale Abweichungen auf. Bei einer herkommlichen globalen OLS-Analyse bleiben diese lokalen Abweichungen verborgen. Mit diesem Beitrag sollen auch Politiker und Experten uber standortspezifische Beziehungen informiert werden; gleichzeitig versteht sich der Beitrag als Kritik an pauschal gestalteten offentlichen Politiken. Unternehmertum Firmengrundung Raumliche Heterogenitat Geografisch gewichtete Regression (GWR) Cheng S. y Li H. Relaciones que varian espacialmente en la formacion de nuevas empresas en los Estados Unidos, Regional Studies. El objetivo de este articulo es analizar las relaciones que varian espacialmente entre la formacion de nuevas empresas y sus determinantes en los diferentes condados de los Estados Unidos. Se calibra una tecnica de regresiones ponderadas geograficamente (RPG) con los datos de nacimiento de las empresas en diez industrias por separado durante el periodo de 2001 a 2003. Los resultados del analisis de la regresion ponderada geograficamente apoyan la existencia de relaciones que varian espacialmente y muestran significantes variaciones locales, segun magnitudes o signos, en la creacion de nuevas empresas en los diez sectores investigados. Las variaciones locales fueron enmascaradas en el tradicional analisis global de la regresion por minimos cuadrados ordinarios. Con este articulo tambien queremos informar a politicos y profesionales de las relaciones inherentes a la localizacion y rechazar la politicas publicas con un enfoque unico. Empresariado Formacion de nuevas empresas Heterogeneidad espacial Regresion ponderada geograficamente

Suggested Citation

  • Shaoming Cheng & Huaqun Li, 2011. "Spatially Varying Relationships of New Firm Formation in the United States," Regional Studies, Taylor & Francis Journals, vol. 45(6), pages 773-789.
  • Handle: RePEc:taf:regstd:v:45:y:2011:i:6:p:773-789
    DOI: 10.1080/00343401003713415
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/00343401003713415
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00343401003713415?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David Audretsch & Max Keilbach, 2005. "Entrepreneurship capital and regional growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 457-469, September.
    2. Sam Youl Lee & Richard Florida & Zoltan J. Acs, 2008. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 13, pages 171-182, Edward Elgar Publishing.
    3. Fritsch, Michael & Falck, Oliver, . "New firm formation by industry over space and time: a multi-level analysis for Germany," Chapters in Economics,, University of Munich, Department of Economics.
    4. Pekka Ilmakunnas & Jukka Topi, 1999. "Microeconomic and Macroeconomic Influences on Entry and Exit of Firms," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 283-301, November.
    5. Brixy, Udo & Grotz, Reinhold, 2006. "Regional patterns and determinants of new firm formation and survival in western Germany," IAB-Discussion Paper 200605, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Jason Henderson & Sarah Low & Stephan Weiler, 2005. "Gauging a region's entrepreneurial potential," Economic Review, Federal Reserve Bank of Kansas City, vol. 90(Q III), pages 61-89.
    7. Mark D. Partridge & Dan S. Rickman & Kamar Ali & M. Rose Olfert, 2008. "The Geographic Diversity of U.S. Nonmetropolitan Growth Dynamics: A Geographically Weighted Regression Approach," Land Economics, University of Wisconsin Press, vol. 84(2), pages 241-266.
    8. Getis, Arthur, 2007. "Reflections on spatial autocorrelation," Regional Science and Urban Economics, Elsevier, vol. 37(4), pages 491-496, July.
    9. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    10. Kamar Ali & Mark D. Partridge & M. Rose Olfert, 2007. "Can Geographically Weighted Regressions Improve Regional Analysis and Policy Making?," International Regional Science Review, , vol. 30(3), pages 300-329, July.
    11. Michael Fritsch & Oliver Falck, 2003. "New Firm Formation by Industry over Space and Time: A Multi-Level Analysis," Discussion Papers of DIW Berlin 322, DIW Berlin, German Institute for Economic Research.
    12. Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996. "Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts," Small Business Economics, Springer, vol. 8(4), pages 297-315, August.
    13. André Stel & Martin Carree & Roy Thurik, 2005. "The Effect of Entrepreneurial Activity on National Economic Growth," Small Business Economics, Springer, vol. 24(3), pages 311-321, February.
    14. Yee Leung & Chang-Lin Mei & Wen-Xiu Zhang, 2000. "Statistical Tests for Spatial Nonstationarity Based on the Geographically Weighted Regression Model," Environment and Planning A, , vol. 32(1), pages 9-32, January.
    15. Katja Seim, 2006. "An empirical model of firm entry with endogenous product‐type choices," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 619-640, September.
    16. Reynolds, Paul D & Miller, Brenda & Maki, Wilbur R, 1995. "Explaining Regional Variation in Business Births and Deaths: U.S. 1976-88," Small Business Economics, Springer, vol. 7(5), pages 389-407, October.
    17. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    18. Acs,Zoltan J. & Armington,Catherine, 2011. "Entrepreneurship, Geography, and American Economic Growth," Cambridge Books, Cambridge University Press, number 9781107402539.
    19. A S Fotheringham & M E Charlton & C Brunsdon, 1998. "Geographically Weighted Regression: A Natural Evolution of the Expansion Method for Spatial Data Analysis," Environment and Planning A, , vol. 30(11), pages 1905-1927, November.
    20. Gartner, William B. & Shane, Scott A., 1995. "Measuring entrepreneurship over time," Journal of Business Venturing, Elsevier, vol. 10(4), pages 283-301, July.
    21. repec:hoo:wpaper:e-95-4 is not listed on IDEAS
    22. Zoltan J. Acs & David B. Audretsch & Maryann P. Feldman, 2008. "Real Effects of Academic Research: Comment," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 7, pages 83-87, Edward Elgar Publishing.
    23. Martin Andersson & Karin Hellerstedt, 2009. "Location Attributes and Start-ups in Knowledge-Intensive Business Services," Industry and Innovation, Taylor & Francis Journals, vol. 16(1), pages 103-121.
    24. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
    25. Simon C. Parker, 2005. "Explaining Regional Variations in Entrepreneurship as Multiple Occupational Equilibria," Journal of Regional Science, Wiley Blackwell, vol. 45(4), pages 829-850, November.
    26. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    27. Acs,Zoltan J. & Audretsch,David B. (ed.), 1993. "Small Firms and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521431156.
    28. Beesley, M E & Hamilton, R T, 1984. "Small Firms' Seedbed Role and the Concept of Turbulence," Journal of Industrial Economics, Wiley Blackwell, vol. 33(2), pages 217-231, December.
    29. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-535, June.
    30. Yefang Huang & Yee Leung, 2002. "Analysing regional industrialisation in Jiangsu province using geographically weighted regression," Journal of Geographical Systems, Springer, vol. 4(2), pages 233-249, June.
    31. Aldrich, Howard & Kalleberg, Arne & Marsden, Peter & Cassel, James, 1989. "In pursuit of evidence: Sampling procedures for locating new businesses," Journal of Business Venturing, Elsevier, vol. 4(6), pages 367-386, November.
    32. David Audretsch & Michael Fritsch, 1999. "The Industry Component of Regional New Firm Formation Processes," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 239-252, November.
    33. Clifford M. Hurvich & Jeffrey S. Simonoff & Chih‐Ling Tsai, 1998. "Smoothing parameter selection in nonparametric regression using an improved Akaike information criterion," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 60(2), pages 271-293.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alejandro Almeida & Antonio Golpe & Raquel Justo, 2021. "From hot to cold: A spatial analysis of self‐employment in the United States," Papers in Regional Science, Wiley Blackwell, vol. 100(4), pages 1005-1023, August.
    2. Cynthia Sin Tian Ho & Björn Berggren, 2020. "The effect of bank branch closures on new firm formation: the Swedish case," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 65(2), pages 319-350, October.
    3. Burhan Can Karahasan, 2014. "The Spatial Distribution Of New Firms:Can Peripheral Areas Escape From The Curse Of Remoteness?," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 8(2), pages 1-28, DECEMBER.
    4. Ferhan Gezici & Burçin Yazgı Walsh & Sinem Metin Kacar, 2017. "Regional and structural analysis of the manufacturing industry in Turkey," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 209-230, July.
    5. Fenjie Long & Longfei Zheng & Haifeng Qian, 2023. "Entrepreneurship in China’s peripheral regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(1), pages 287-313, February.
    6. Andrew G Ross & Kenny Crossan & Linda Juleff, 2012. "How accurate are VAT registrations as a measure of entrepreneurship?," Local Economy, London South Bank University, vol. 27(3), pages 279-296, May.
    7. Sin Tian Ho, Cynthia & Wilhelmsson, Mats, 2019. "Accessibility of bank branches and new firm formation in Sweden," Working Paper Series 19/8, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    8. Jean Bonnet & Sébastien Bourdin & Fatten Gazzah, 2017. "The entrepreuneurial context, a factor of Economic Growth in the Europe Union? A GWR analysis on the EU Regions," Working Papers halshs-01619798, HAL.
    9. Murakami, Tomoaki & Nakajima, Shinsaku & Takahashi, Taro & Nishihara, Yukinaga & Imai, Asako & Kikushima, Ryousuke & Sato, Takeshi, 2014. "Spatially Varying Impacts of Farmers Markets on Agricultural Land Use," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170668, Agricultural and Applied Economics Association.
    10. Tsvetkova, Alexandra, 2016. "Do diversity, creativity and localized competition promote endogenous firm formation? Evidence from a high-tech US industry," MPRA Paper 72349, University Library of Munich, Germany.
    11. Andrew G Ross & John Adams & Kenny Crossan, 2015. "Entrepreneurship and the spatial context: A panel data study into regional determinants of small growing firms in Scotland," Local Economy, London South Bank University, vol. 30(6), pages 672-688, September.
    12. Uche Oluku & Shaoming Cheng, 2021. "A Regional Analysis of the Relationship Between Housing Affordability and Business Growth," Economic Development Quarterly, , vol. 35(4), pages 269-286, November.
    13. Subrat Sarangi & R. K. Renin Singh & Brajaballav Kar, 2022. "A comparative assessment of migrant and indigenous entrepreneurs on regional development: A case of Odisha, India," Growth and Change, Wiley Blackwell, vol. 53(1), pages 170-199, March.
    14. Gutierrez-Lythgoe, Antonio, 2023. "El capital social y el autoempleo en EEUU: Evidencia con datos de Facebook [Social Capital and Self-Employment in the United States: Evidence from Facebook Data]," MPRA Paper 119068, University Library of Munich, Germany.
    15. Morgenroth, Edgar, 2018. "Prospects for Irish Regions and Counties: Scenarios and Implications," Research Series, Economic and Social Research Institute (ESRI), number RS70, June.
    16. Canfei He & Rudai Yang, 2016. "Determinants of Firm Failure: Empirical Evidence from China," Growth and Change, Wiley Blackwell, vol. 47(1), pages 72-92, March.
    17. Alexandra Tsvetkova & Mark Partridge, 2021. "Knowledge-based service economy and firm entry: an alternative to the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 56(2), pages 637-657, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaoming Cheng & Huaqun Li, 2010. "The effects of unemployment on new firm formation revisited: Does space matter?," Regional Science Policy & Practice, Wiley Blackwell, vol. 2(2), pages 97-120, November.
    2. Shaoming Cheng & Huaqun Li, 2012. "New firm formation facing cultural and racial diversity," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 759-774, November.
    3. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    4. Shaoming Cheng, 2011. "Business cycle, industrial composition, or regional advantage? A decomposition analysis of new firm formation in the United States," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 47(1), pages 147-167, August.
    5. Roberto Basile & Roberta Capello & Andrea Caragliu, 2012. "Technological interdependence and regional growth in Europe: Proximity and synergy in knowledge spillovers," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 697-722, November.
    6. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    7. Henry Renski, 2014. "The Influence of Industry Mix on Regional New Firm Formation in the United States," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1353-1370, August.
    8. Enrico Santarelli & Marco Vivarelli, 2007. "Entrepreneurship and the process of firms’ entry, survival and growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(3), pages 455-488, June.
    9. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    10. Paul A. Coomes & Jose Fernandez & Stephan F. Gohmann, 2013. "The Rate of Proprietorship Among Metropolitan Areas: The Impact of the Local Economic Environment and Capital Resources," Entrepreneurship Theory and Practice, , vol. 37(4), pages 745-770, July.
    11. Kim, Younghwan & Kim, Wonjoon & Yang, Taeyong, 2012. "The effect of the triple helix system and habitat on regional entrepreneurship: Empirical evidence from the U.S," Research Policy, Elsevier, vol. 41(1), pages 154-166.
    12. David B. Audretsch & Dirk Dohse & Annekatrin Niebuhr, 2015. "Regional unemployment structure and new firm formation," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 115-138, November.
    13. Marcus Dejardin, 2010. "La création d'entreprises et ses rapports au territoire," Post-Print halshs-00618267, HAL.
    14. 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.
    15. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    16. Jitendra Parajuli & Kingsley E. Haynes, 2017. "Panel Data Models of New Firm Formation in New England," REGION, European Regional Science Association, vol. 4, pages 65-76.
    17. Sven Müller, 2012. "Identifying spatial nonstationarity in German regional firm start-up data," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 113-132, September.
    18. Jitendra Parajuli & Kingsley E. Haynes, 2015. "Broadband Internet and new firm formation: a US perspective," Chapters, in: Charlie Karlsson & Urban Gråsjö & Sofia Wixe (ed.), Innovation and Entrepreneurship in the Global Economy, chapter 9, pages 210-236, Edward Elgar Publishing.
    19. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    20. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2010. "Analysis of county employment and income growth in Appalachia: a spatial simultaneous-equations approach," Empirical Economics, Springer, vol. 38(1), pages 23-45, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:regstd:v:45:y:2011:i:6:p:773-789. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRES20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.