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Regional authority and business dynamics across european regions

Author

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  • Marc Garcia-Ruiz

    (Universidad de Barcelona)

Abstract

Since the mid-20th century, a significant number of countries have transferred powers to subnational governments, which has had a considerable impact on the economic and institutional landscape. In this context, local governments have become essential in the implementation of policies that directly affect the firm’s demography. Consequently, we analyze the impact of regional authority on a set of outcomes previously unexplored in the literature: the level of entrepreneurship and firm survival. Results suggest that greater autonomy can stimulate regional business dynamics, increasing enterprise creation but lowering survival rates. Moreover, these effects appear to be conditioned by institutional quality, where a stronger institutional framework enhances the effect of regional authority on business entry and mitigates its impact on survival.

Suggested Citation

  • Marc Garcia-Ruiz, 2026. "Regional authority and business dynamics across european regions," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, vol. 66(66), pages 165-186, October.
    • Handle: RePEc:ris:invreg:023684
    DOI: 10.38191/iirr-jorr.26.002
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    Keywords

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    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • 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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