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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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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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  8. Fischer, M.M. & Nijkamp, P., 2009. "Entrepreneurship and Regional Development," Serie Research Memoranda 0035, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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  10. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 275-304.
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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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