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Dynamics Of Regional New Firm Formation In Turkey

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  • Burhan Can Karahasan

Abstract

type="main" xml:lang="en"> New firm formation is an important determinant of regional development. Entrepreneurial decisions on location choice are affected by numerous factors. Given the importance of local regional characteristics, this study focuses on the dynamics behind the regional formation of new firms in Turkey using balanced panel data from 1997 to 2006. An initial set of analyses underline the ongoing persistence of the unequal distribution of new firms. Among various factors, results obtained from different panel models suggest the importance of local demand, provincial business cycles, human capital development, and financial availabilities to explain the regional differences of new firm formation in Turkey. These results, which are robust to the inclusion of spatial links, also confirm that the proposed channels are common for manufacturing, services, and trade-based production.

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  • Burhan Can Karahasan, 2015. "Dynamics Of Regional New Firm Formation In Turkey," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 27(1), pages 18-39, March.
    • Handle: RePEc:bla:revurb:v:27:y:2015:i:1:p:18-39
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    Cited by:

    1. Iman Cheratian & Saleh Goltabar & Carla Daniela Calá, 2021. "Spatial drivers of firm entry in Iran," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 66(2), pages 463-496, April.
    2. 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.
    3. Doruk Cengiz & Hasan Tekgüç, 2022. "Is It Merely a Labor Supply Shock? Impacts of Syrian Migrants on Local Economies in Turkey," ILR Review, Cornell University, ILR School, vol. 75(3), pages 741-768, May.
    4. Duran, Hasan Engin, 2019. "Asymmetries in regional development: Does TFP or capital accumulation matter for spatial inequalities?," The Journal of Economic Asymmetries, Elsevier, vol. 20(C).

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