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The effect of new business formation on regional development over time: the case of Germany

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  • Fritsch, Michael
  • Mueller, Pamela

Abstract

We investigate the effects of new business formation on employment change in German regions. A special focus is on the lag-structure of this effect and on differences between regions. The different phases of the effects of new business formation on regional development are relatively pronounced in agglomerations as well as in regions with a high-level of labor productivity. In low-productivity regions, the overall employment effect of new business formation activity might be negative. The interregional differences indicate that regional factors play an important role. --

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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 2006,13.

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Date of creation: 2006
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Handle: RePEc:zbw:tufwps:200613

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Keywords: Entrepreneurship; new business formation; regional development;

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References

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  1. 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.
  2. Michael Fritsch & Udo Brixy & Oliver Falck, 2006. "The Effect of Industry, Region, and Time on New Business Survival – A Multi-Dimensional Analysis," Review of Industrial Organization, Springer, Springer, vol. 28(3), pages 285-306, 05.
  3. Michael Fritsch, 2008. "How does new business formation affect regional development? Introduction to the special issue," Small Business Economics, Springer, Springer, vol. 30(1), pages 1-14, January.
  4. Fritsch, Michael & Mueller, Pamela, 2006. "The effect of new business formation on regional development over time: the case of Germany," Freiberg Working Papers 2006,13, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  5. Fritsch, Michael, 2004. "Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany," Freiberg Working Papers 2004,09, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  6. André van Stel & Kashifa Suddle, 2005. "The Impact of New Firm Formation on Regional Development in the Netherlands," Scales Research Reports, EIM Business and Policy Research H200503, EIM Business and Policy Research.
  7. Pamela Mueller & André van Stel & David J. Storey, 2006. "The effects of new firm formation on regional development over time: The case of Great Britain," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2006-24, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  8. Mark Doms & Eric J. Bartelsman, 2000. "Understanding Productivity: Lessons from Longitudinal Microdata," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 569-594, September.
  9. Franz Kronthaler, 2005. "Economic capability of East German regions: Results of a cluster analysis," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 39(6), pages 739-750.
  10. Eric A. Nerlinger & Franz-Josef Bade, 2000. "The spatial distribution of new technology-based firms: Empirical results for West-Germany," Papers in Regional Science, Springer, Springer, vol. 79(2), pages 155-176.
  11. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(8), pages 961-975.
  12. Audretsch, D.B. & Fritsch, M., 1993. "A Note on the Measurement of Entry Rates," Papers, Bergakademie Freiberg Technical University - Faculty of Economics and Business Administration 93-5, Bergakademie Freiberg Technical University - Faculty of Economics and Business Administration.
  13. 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.
  14. Fritsch, Michael & Falck, Oliver, . "New firm formation by industry over space and time: a multi-level analysis for Germany," Chapters in Economics, University of Munich, Department of Economics, University of Munich, Department of Economics.
  15. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780195183511, October.
  16. Michael Fritsch & Pamela Mueller, 2005. "The Persistence of Regional New Business Formation-Activity over Time – Assessing the Potential of Policy Promotion Programs," ERSA conference papers ersa05p706, European Regional Science Association.
  17. Boeri, Tito & Cramer, Ulrich, 1992. "Employment growth, incumbents and entrants : Evidence from Germany," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 10(4), pages 545-565, December.
  18. Pamela Mueller, 2005. "Exploring the Knowledge Filter - How Entrepreneurship and University-Industry Relations Drive Economic Growth," ERSA conference papers ersa05p610, European Regional Science Association.
  19. Mueller, Pamela, 2006. "Exploring the knowledge filter: How entrepreneurship and university-industry relationships drive economic growth," Research Policy, Elsevier, Elsevier, vol. 35(10), pages 1499-1508, December.
  20. Michael Fritsch & Oliver Falck, 2003. "New Firm Formation by Industry over Space and Time: A Multi-Level Analysis," Discussion Papers of DIW Berlin 322, DIW Berlin, German Institute for Economic Research.
  21. Adriaan J. van Stel & David J. Storey, 2004. "The link between firm births and job creation: Is there a Upas Tree effect?," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-33, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  22. Fritsch, Michael & Falck, Oliver, 2007. "New business formation by industry over space and time: A multidimensional analysis," Munich Reprints in Economics, University of Munich, Department of Economics 20306, University of Munich, Department of Economics.
  23. 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.
  24. Michael Fritsch & Antje Weyh, 2006. "How Large are the Direct Employment Effects of New Businesses? An Empirical Investigation for West Germany," Small Business Economics, Springer, Springer, vol. 27(2), pages 245-260, October.
  25. Michael Fritsch & Pamela Mueller, 2004. "The Effects of New Business Formation on Regional Development over Time," Papers on Entrepreneurship, Growth and Public Policy, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group 2004-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  26. Fariñas, Jose C. & Ruano, Sonia, 2005. "Firm productivity, heterogeneity, sunk costs and market selection," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 23(7-8), pages 505-534, September.
  27. Udo Brixy & Michael Niese, 2003. "The determinants of regional differences in new firm formation in West-Germany," ERSA conference papers ersa03p268, European Regional Science Association.
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  1. The macroeconomics of vajazzles
    by chris dillow in Stumbling and Mumbling on 2012-01-31 13:34:25
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