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

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  • Katharina Pijnenburg

    ()

  • 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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  1. Capello, R. & Nijkamp, P., 2009. "Regional growth and development theories revisited," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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  7. Olivier Parent & James P. Lesage, 2007. "Using the Variance Structure of the Conditional Autoregressive Spatial Specification to Model Knowledge Spillovers," University of Cincinnati, Economics Working Papers Series, University of Cincinnati, Department of Economics 2007-03, University of Cincinnati, Department of Economics.
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  9. Zoltan Acs & David Audretsch & Erik Lehmann, 2013. "The knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, Springer, vol. 41(4), pages 757-774, December.
  10. David B. Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  11. Fischer, M.M. & Nijkamp, P., 2009. "Entrepreneurship and Regional Development," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0035, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  12. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 36(2), pages 113-124.
  13. Zoltan J. Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  14. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, 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, Asociación Española de Ciencia Regional, issue 21, pages 71-90.

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