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What makes a region entrepreneurial? Evidence from Britain

Author

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  • Howard J. Wall

    () (Research Division, Federal Reserve Bank of St. Louis, P.O. Box 442, St. Louis, MO 63166-0442, USA)

  • Yannis Georgellis

    () (Department of Economics and Finance, Brunel University, Uxbridge UB8 3PH, United Kingdom)

Abstract

There is a great deal of variation in the levels of entrepreneurship, or rates of self-employment, across the regions of Britain. Over the period 1983-1995, average self-employment in the North, Scotland, and the West Midlands was respectively 25%, 15%, and 15% lower than the national average, whereas in the South West, East Anglia, and Wales it was respectively 28%, 23%, and 21% higher. We develop a theoretical model of regional self-employment, and estimate the roles of labour market conditions, labour force characteristics, industry composition, and region-specific factors such as entrepreneurial human capital. Our results suggest that all of these factors are important, and that regional heterogeneity and regionally correlated disturbances must be accounted for when estimating regional self-employment relationships.

Suggested Citation

  • Howard J. Wall & Yannis Georgellis, 2000. "What makes a region entrepreneurial? Evidence from Britain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(3), pages 385-403.
  • Handle: RePEc:spr:anresc:v:34:y:2000:i:3:p:385-403
    Note: Received: November 1998 / Accepted: July 1999
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