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Firm entries and exits in Estonian urban municipalities: urban hinterlands and rural peripheries, 2005–2012

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  • Anne Põder
  • Ants-Hannes Viira
  • Rando Värnik

Abstract

This paper studies firm entries and exits in Estonian urban areas, urban hinterlands, and rural peripheries following EU accession, and it analyzes the effects of changes in population density, employee income level, unemployment, and economic climate on firm entries and exits. It concludes that the firm entry rate exceeded the exit rate in all of the years between 2005 and 2012. The urban hinterland is characterized by the highest level of both entries and exits. The fixed-effect regression models show that income and recession, which are the most significant factors to impact on local entrepreneurship, have a similar effect on different municipality types.

Suggested Citation

  • Anne Põder & Ants-Hannes Viira & Rando Värnik, 2017. "Firm entries and exits in Estonian urban municipalities: urban hinterlands and rural peripheries, 2005–2012," Journal of Baltic Studies, Taylor & Francis Journals, vol. 48(3), pages 285-307, July.
  • Handle: RePEc:taf:rbalxx:v:48:y:2017:i:3:p:285-307
    DOI: 10.1080/01629778.2016.1210661
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