Do Regions with Entrepreneurial Neighbors Perform Better?: A Spatial Econometric Approach for German Regions
AbstractWe use a neoclassical production function to analyze the effects of knowledge spillovers via entrepreneurship on economic performance of 337 German districts. To take the spatial dependence structure of the data into account, we estimate a spatial Durbin model. We highlight the importance of the choice of the appropriate weight matrix. We find positive knowledge spillover effects via entrepreneurship within a certain region. Between regions, entrepreneurship as a vehicle by which knowledge spills over and contributes to economic performance depends largely on the choice of the weight matrix. We see this as evidence for regionally bounded knowledge spillover effects via entrepreneurship.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1103.
Length: 23 p.
Date of creation: 2011
Date of revision:
Publication status: Forthcoming in :Regional Studies (2013)
Entrepreneurship capital; regional output; spatial weight matrix;
Other versions of this item:
- Katharina Pijnenburg & Konstantin A. Kholodilin, 2011. "Do Regions with Entrepreneurial Neighbors Perform Better? A Spatial Econometric Approach for German Regions," ERSA conference papers ersa11p58, European Regional Science Association.
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- M13 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - New Firms; Startups
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-19 (All new papers)
- NEP-CIS-2011-02-19 (Confederation of Independent States)
- NEP-ENT-2011-02-19 (Entrepreneurship)
- NEP-GEO-2011-02-19 (Economic Geography)
- NEP-SBM-2011-02-19 (Small Business Management)
- NEP-URE-2011-02-19 (Urban & Real Estate Economics)
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