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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

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  • 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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    References listed on IDEAS

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    1. David Audretsch & Max Keilbach, 2005. "Entrepreneurship capital and regional growth," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(3), pages 457-469, September.
    2. Pernilla Andersson & Eskil Wadensjö, 2007. "Do the unemployed become successful entrepreneurs?," International Journal of Manpower, Emerald Group Publishing, vol. 28(7), pages 604-626, October.
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    11. Jean Bonnet, 2010. "La dynamique entrepreneuriale du (des) territoire(s) français : entre firmes entrepreneuriales et entrepreneuriat lié à l'économie résidentielle," Post-Print halshs-00555024, HAL.
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    Cited by:

    1. Zheng, Liang & Zhao, Zhong, 2017. "What drives spatial clusters of entrepreneurship in China? Evidence from economic census data," China Economic Review, Elsevier, vol. 46(C), pages 229-248.
    2. Cheratian, Iman & Goltabar, Saleh & Calá, Carla Daniela, 2019. "Spatial drivers of firm entry in Iran," Nülan. Deposited Documents 3058, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Berggren, Björn & Fili, Andreas & Wilhelmsson, Mats Håkan, 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.

    More about this item

    Keywords

    J21; M13; O18;

    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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