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New firm formation facing cultural and racial diversity**It is gratefully acknowledged that this paper was partially supported by the US Department of Agriculture, National Institute for Food and Agriculture (Grant # 2008†02648)

Author

Listed:
  • Cheng, Shaoming
  • Li, Huaqun

Abstract

This paper is intended to examine how regional diversity in terms of cultural and racial diversity affects new firm formation in 10 disaggregated industrial sectors across US counties. Bayesian Markov Chain Monte Carlo method is used to estimate the spatial autoregressive regression models. It is suggested that regional diversity positively affects new firm formation, both in its own and neighbouring counties, in selected industries examined.

Suggested Citation

Handle: RePEc:eee:paresc:v:91:y:2012:i:4:p:759-775
DOI: 10.1111/j.1435-5957.2011.00404.x
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Keywords

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JEL classification:

  • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
  • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
  • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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