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Direct and indirect effects of new business formation on regional employment

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  • Fritsch, Michael
  • Mueller, Pamela
  • Weyh, Antje

Abstract

We investigate the impact of new business formation on regional employment. The main effects occur after a considerable time lag. Obviously, a large part of the effect is not due to job creation by the newcomers but rather is of indirect nature. This implies that a large part of the debate about job creation by new businesses so far has been misleading. -- Wir analysieren den Einfluss von Gründungen auf die regionale Beschäftigung. Die wesentlichen Effekte treten erst mit erheblicher zeitlicher Verzögerung auf. Offensichtlich ist ein großer Teil der Wirkungen nicht auf die Beschäftigungsentwicklung der Newcomer zurück zu führen, sondern mehr indirekter Natur. Dies impliziert, dass ein wesentlicher Teil der bisherigen Debatte über die Beschäftigungswirkungen von Neugründungen von falschen Voraussetzungen ausgeht.

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Bibliographic Info

Paper provided by TU Bergakademie Freiberg, Faculty of Economics and Business Administration in its series Freiberg Working Papers with number 2004,10.

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Date of creation: 2004
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Handle: RePEc:zbw:tufwps:200410

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Related research

Keywords: Regional growth; new businesses; entrepreneurship; time lags; start-up cohorts; Regionalentwicklung; Unternehmensgründungen; Entrepreneurship; Time Lags; Gründungskohorten;

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References

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  1. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 961-975.
  2. Fritsch, Michael & Weyh, Antje, 2004. "How large are the direct employment effects of new businesses? An empirical investigation," Freiberg Working Papers 2004,05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  3. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
  4. Boeri, Tito & Cramer, Ulrich, 1992. "Employment growth, incumbents and entrants : Evidence from Germany," International Journal of Industrial Organization, Elsevier, vol. 10(4), pages 545-565, December.
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Cited by:
  1. Otto, Anne & Fornahl, Dirk, 2008. "Long-term growth determinants of young businesses in Germany : effects of regional concentration and specialisation," IAB Discussion Paper 200813, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  2. Josep Arauzo Carod & Daniel Liviano Solís & Mònica Martín Bofarull, 2008. "New business formation and employment growth: some evidence for the Spanish manufacturing industry," Small Business Economics, Springer, vol. 30(1), pages 73-84, January.
  3. Anne Otto & Dirk Fornahl, 2009. "Cohesion Policy:Methodology And Indicators Towards Common Approach," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 3(1), pages 1-35, JUNE.
  4. Anne Otto, 2006. "The Role of New Firms for the Development of Clusters," ERSA conference papers ersa06p275, European Regional Science Association.

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