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Human Capital and Regional Entry of Firms

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  • Berglund, Elisabet

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    (Department of Economics, Umeå University)

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    Abstract

    This paper studies the effect of human capital on the regional entry of firms. An econometric model for a system of disjoint regions and frequency data is constructed, making the comparison between the regions a random discrete choice problem. Empirical evidence from Swedish labour market regions for the manufacturing and the professional service sectors, 1986-1989, is presented. For both sectors, the share with higher education has a positive effect on the regional entry probability of firms in the medium range of the share variable. Sector specific experience has a positive but declining effect on the regional entry probability of firms in the professional service sector whereas it has a negative effect in the manufacturing sector. In relation to other variables in the models the levels of education have moderate effects while the shares with sector specific experience have larger impacts.

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    File URL: http://www.econ.umu.se/DownloadAsset.action?contentId=121188&languageId=3&assetKey=ues500
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    Bibliographic Info

    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 500.

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    Length: 22 pages
    Date of creation: 13 Apr 1999
    Date of revision:
    Handle: RePEc:hhs:umnees:0500

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    Postal: Department of Economics, Umeå University, S-901 87 Umeå, Sweden
    Phone: 090 - 786 61 42
    Fax: 090 - 77 23 02
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    Web page: http://www.econ.umu.se/
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    Related research

    Keywords: Number of Regional Entries; Labour Market Regions; Poisson Regression;

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    References

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    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October.
    2. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
    3. Elisabet Berglund & Kurt Brännäs, 2001. "Plants' entry and exit in Swedish municipalities," The Annals of Regional Science, Springer, vol. 35(3), pages 431-448.
    4. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
    5. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    6. Cameron, A.C. & Windmeijer, F.A.G., 1993. "R-Squared Measures for Count Data Regression Models with Applications to Health Care Utilization," Papers 93-24, California Davis - Institute of Governmental Affairs.
    7. Zucker, Lynne G & Darby, Michael R & Brewer, Marilynn B, 1998. "Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises," American Economic Review, American Economic Association, vol. 88(1), pages 290-306, March.
    8. Costrell, Robert M, 1994. "A Simple Model of Educational Standards," American Economic Review, American Economic Association, vol. 84(4), pages 956-71, September.
    9. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
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    Cited by:
    1. Berglund, Elisabet, 1999. "Options, Timing, and Regional Entry of Firms," UmeÃ¥ Economic Studies 505, Umeå University, Department of Economics.

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