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The Impact of New Firm Formation on Regional Development in the Netherlands

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Author Info
Stel, A.J. van
Suddle, K. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)

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Abstract

This paper examines the relationship between new firm formation and regional employment change in the Netherlands. Using a new regional data base for the period 1988-2002, we examine the time lags involved in the relationship. We also investigate whether the relationship differs by time period, by sector and by degree of urbanization. We find that the maximum effect of new businesses on regional development is reached after about six years. Our results also suggest that the overall employment impact of new-firm startups is positive but that the immediate employment effects may be small in the Netherlands. Furthermore, we find that the relation between new businesses and regional development has been stable during the period under investigation, that the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is stronger in areas with a higher degree of urbanization.

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Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam. in its series Research Paper with number ERS-2005-075-ORG Revision_Date: 2008-09-12.

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Date of creation: 30 Nov 2005
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Handle: RePEc:dgr:eureri:30007804

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Keywords: Startups Entrepreneurship Regional Development the Netherlands

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. S.Brakman & H.Garretsen & Joeri Gorter & Albert van der Horst & Marc Schramm, 2005. "New economic geography, empirics, and regional policy," CPB Special Publications 56, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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  2. André van Stel & David Storey & Pamela Mueller, 2006. "The effects of new firm formation on regional development over time: The case of Great Britain," Scales Research Reports H200618, EIM Business and Policy Research. [Downloadable!]
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  3. Attila Varga & Hans Schalk, 2004. "Knowledge Spillovers, Agglomeration and Macroeconomic Growth: An Empirical Approach," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 977-989, January. [Downloadable!] (restricted)
  4. Gerke J. Hoogstra & Jouke van Dijk, 2004. "Explaining Firm Employment Growth: Does Location Matter?," Small Business Economics, Springer, vol. 22(3_4), pages 179-192, 04. [Downloadable!]
  5. Joris Meijaard, 2001. "Making sense of the New Economy," Scales Research Reports H200009, EIM Business and Policy Research. [Downloadable!]
  6. Adriaan J. van Stel & David J. Storey, 2004. "The link between firm births and job creation: Is there a Upas Tree effect?," Discussion Papers on Entrepreneurship, Growth and Public Policy 2004-33, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
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  7. Brian Ashcroft & James Love & Eleanor Malloy, 1991. "New Firm Formation in the British Counties with Special Reference to Scotland," Regional Studies, Taylor and Francis Journals, vol. 25(5), pages 395-409, October. [Downloadable!] (restricted)
  8. Michael Fritsch & Pamela Mueller, 2004. "The Effects of New Business Formation on Regional Development over Time," Discussion Papers on Entrepreneurship, Growth and Public Policy 2004-36, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
  9. Henry Nieuwenhuijsen & Niels Bosma, 2002. "Turbulence and Productivity; an analysis of 40 Dutch regions in the period 1988-1996," Scales Research Reports N200205, EIM Business and Policy Research. [Downloadable!]
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  10. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 961-975, January. [Downloadable!] (restricted)
  11. David B. Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor and Francis Journals, vol. 36(2), pages 113-124, April. [Downloadable!] (restricted)
  12. Roy Thurik & Sander Wennekers & Lorraine Uhlaner, 2002. "Entrepreneurship and economic performance: a macro perspective," Scales Research Reports N200220, EIM Business and Policy Research. [Downloadable!]
  13. David Audretsch & Roy Thurik, 1997. "Sources of Growth," Tinbergen Institute Discussion Papers 97-109/3, Tinbergen Institute. [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sherrill Shaffer & Iftekhar Hasan & Mingming Zhou, 2008. "New Small Firms And Dimensions Of Economic Performance," CAMA Working Papers 2008-24, Australian National University, Centre for Applied Macroeconomic Analysis. [Downloadable!]
  2. Martin Carree & Roy Thurik, 2006. "The Lag Structure of the Impact of Business Ownership on Eco-nomic Performance in OECD Countries," Discussion Papers on Entrepreneurship, Growth and Public Policy 2006-02, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
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