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Institutions and Firm Formation: an Empirical Analysis of Portuguese Municipalities

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  • Simão Arouca

    ()
    (Nova School of Business and Economics. Office for Strategy and Studies (GEE), Portuguese Ministry of Economy and Employment.)

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    Abstract

    The uneven spatial distribution of start-ups observed for Portugal from 2003 to 2009 suggests that local attributes, among which the quality of municipal institutions and their respective governance, impact the entrepreneurial process. Through the usage of a fixed effects negative binomial model, this thesis examines the role of municipalities in stimulating firm births, finding both the development of business-related infrastructures and the signals stemming from sound financial management to be the most relevant determinants. While some significance, although conditional, can be assigned to fast-paced licensing and EU structural funding, political right-left preferences appear to exert a negligible influence.

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    File URL: http://www.gee.min-economia.pt/RePEc/WorkingPapers/GEE_PAPERS_50.pdf
    File Function: First version, 2013
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    Bibliographic Info

    Paper provided by Gabinete de Estratégia e Estudos, Ministério da Economia e da Inovação in its series GEE Papers with number 0050.

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    Length: 25 pages
    Date of creation: Oct 2013
    Date of revision: Oct 2013
    Handle: RePEc:mde:wpaper:0050

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    Keywords: Firm Formation; Municipalities; Institutions.;

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    1. Rui Baptista & Joana Mendonça, 2010. "Proximity to knowledge sources and the location of knowledge-based start-ups," The Annals of Regional Science, Springer, vol. 45(1), pages 5-29, August.
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