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Do Regions with Entrepreneurial Neighbors Perform Better? A Spatial Econometric Approach for German Regions

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  • Katharina Pijnenburg

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  • Konstantin A. Kholodilin

Abstract

We 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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File URL: http://www-sre.wu.ac.at/ersa/ersaconfs/ersa11/e110830aFinal00057.pdf
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Bibliographic Info

Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p58.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p58

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  1. Zoltan Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Regional Studies, Taylor and Francis Journals, vol. 38(8), pages 911-927.
  2. Audretsch, David B & Keilbach, Max, 2003. "Entrepreneurship Capital and Economic Performance," CEPR Discussion Papers 3678, C.E.P.R. Discussion Papers.
  3. Acs, Zoltan & Audrestch, David & Braunerhjelm, Pontus & Carlsson, Bo, 2007. "The Knowledge Spillover Theory of Entrepreneurship," Working Paper Series in Economics and Institutions of Innovation 77, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  4. Olivier Parent & James P. LeSage, 2008. "Using the variance structure of the conditional autoregressive spatial specification to model knowledge spillovers," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 23(2), pages 235-256.
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  7. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor and Francis Journals, vol. 3(3), pages 275-304.
  8. LeSage, James P. & Polasek, Wolfgang, 2006. "Incorporating Transportation Network Structure in Spatial Econometric Models of Commodity Flows," Economics Series 188, Institute for Advanced Studies.
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  12. Manfred Fischer & Monika Bartkowska & Aleksandra Riedl & Sascha Sardadvar & Andrea Kunnert, 2009. "The impact of human capital on regional labor productivity in Europe," Letters in Spatial and Resource Sciences, Springer, vol. 2(2), pages 97-108, October.
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  14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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Cited by:
  1. Burridge, Peter, 2011. "A research agenda on general-to-specific spatial model search," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 21, pages 71-90.

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