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The factors determining firm start-ups in French regions and the heterogeneity of regional labor markets

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  • Marie-Estelle Binet

  • François Facchini

Abstract

This paper investigates the determinants of business start-ups in the 22 French regions, considering four different sectors (industry, real estate, trade and services) over 1995–2004. The main innovation of the paper was to analyze regional differences in the decision to start a new business on a sector basis. Using spatial statistics and dynamic panel data methods, we estimate spatial regimes models. First, we show that regional factors determining new firm start-ups differ between sectors. Second, the estimation results are consistent with the existence of spatial heterogeneity. Finally, we observe persistence in start-up rates. Copyright Springer-Verlag Berlin Heidelberg 2015

Suggested Citation

  • Marie-Estelle Binet & François Facchini, 2015. "The factors determining firm start-ups in French regions and the heterogeneity of regional labor markets," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 251-268, January.
    • Handle: RePEc:spr:anresc:v:54:y:2015:i:1:p:251-268
    DOI: 10.1007/s00168-014-0653-x
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    Cited by:

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    2. 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.
    3. Zhang Juanfeng & Lin Yupiaopiao & Han Rui & Li Lele & Zeng Hui, 2024. "Do high housing prices inhibit entrepreneurial activity?—Evidence from Yangtze River Delta cities, China," Growth and Change, Wiley Blackwell, vol. 55(3), September.
    4. Ram Subramaniam & Murali Sambasivan, 2025. "Analyzing the role of digital/non-digital technology entrepreneur typology in external factors’ influence on venture launch decisions," Journal of Innovation and Entrepreneurship, Springer, vol. 14(1), pages 1-19, December.
    5. Miao, Shuchao & Chi, Jing & Liao, Jing & Qian, Long, 2021. "How does religious belief promote farmer entrepreneurship in rural China?," Economic Modelling, Elsevier, vol. 97(C), pages 95-104.
    6. Nobuo Kobayashi, 2020. "A factor analysis of business start-up rates in Japan: contemporary and historical context," Discussion Paper Series 202, School of Economics, Kwansei Gakuin University.
    7. Mats Håkan Wilhelmsson, 2017. "The effect of house prices on business start-ups: A review and analysis using Swedish regional data," REGION, European Regional Science Association, vol. 4, pages 1-16.

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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • 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

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