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An Urban Approach to Firm Entry: The Effect of Urban Size

Author

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  • JOSEP‐MARIA ARAUZO‐CAROD
  • MERCEDES TERUEL‐CARRIZOSA

Abstract

ABSTRACT This article explores the determinants of firm entry in Spanish municipalities. The authors consider that size is an important determinant of a city's capacity to attract new manufacturing firms. Panel data were used to estimate the determinants of entry according to urban size in Spain (from 1994 to 1702). This article contributes to the literature on market entry because most previous contributions have focused on regional factors rather than urban ones. The results show that local characteristics affect the formation of new firms. However, more local data are needed to obtain more specific results.

Suggested Citation

  • Josep‐Maria Arauzo‐Carod & Mercedes Teruel‐Carrizosa, 2005. "An Urban Approach to Firm Entry: The Effect of Urban Size," Growth and Change, Wiley Blackwell, vol. 36(4), pages 508-528, September.
    • Handle: RePEc:bla:growch:v:36:y:2005:i:4:p:508-528
    DOI: 10.1111/j.1468-2257.2005.00292.x
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    References listed on IDEAS

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    1. 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.
    2. Josef Frohlich & Helmut Gassler, 1998. "The regional variation of new technology based firms in Austria," ERSA conference papers ersa98p452, European Regional Science Association.
    3. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    4. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
    5. Zoltan J Acs & Catherine Armington, 2003. "The Geographic Concentration of New Firm Formation and Human Capital: Evidence from the Cities," Working Papers 03-05, Center for Economic Studies, U.S. Census Bureau.
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    Cited by:

    1. Michael Wyrwich, 2014. "Ready, set, go! Why are some regions entrepreneurial jump starters?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 487-513, September.
    2. Davide Piacentino & Giuseppe Espa & Danila Filipponi & Diego Giuliani, 2017. "Firm Demography and Regional Development: Evidence from Italy," Growth and Change, Wiley Blackwell, vol. 48(3), pages 359-389, September.
    3. Daniel Liviano & Josep-Maria Arauzo-Carod, 2012. "Spatial Exploration of Age Distribution in Catalan Municipalities," ERSA conference papers ersa12p81, European Regional Science Association.
    4. Christopher Andrew Hartwell, 2014. "Capital Controls and the Determinants of Entrepreneurship," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 64(6), pages 434-456, December.
    5. Gao, Xue, 2021. "The comparative impact of solar policies on entrepreneurship in the U.S. solar photovoltaic installation industry," Energy Policy, Elsevier, vol. 156(C).
    6. Shih-Kuan Chiu & Fang-Yi Lo & Yuliana Susy, 2015. "Taiwanese Foreign Direct Investment in Southeast Asia: An Empirical Investigation of the OLI Framework," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 11(2), pages 127-141, July.
    7. Mauricio Oyarzo & Gianni Romani & Miguel Atienza & Marcelo Lufin, 2015. "Spatio-temporal persistence of municipal rates of business start-ups in Chile," Documentos de Trabajo en Economia y Ciencia Regional 61, Universidad Catolica del Norte, Chile, Department of Economics, revised Jul 2015.
    8. Arauzo Carod, Josep Maria & Coll Martínez, Eva & Turcu, Camelia, 2018. "Where New Creative Industries Locate? Evidence from French Departments," Working Papers 2072/307042, Universitat Rovira i Virgili, Department of Economics.
    9. Josep-Maria Arauzo-Carod & Eva Coll-Martínez & Camelia Turcu, 2024. "Location attributes explaining the entry of firms in creative industries: evidence from France," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(1), pages 223-254, January.

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