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Do Regions with Entrepreneurial Neighbours Perform Better? A Spatial Econometric Approach for German Regions

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  • Katharina Pijnenburg
  • Konstantin A. Kholodilin

Abstract

Pijnenburg K. and Kholodilin K. A. Do regions with entrepreneurial neighbours perform better? A spatial econometric approach for German regions, Regional Studies . A Neoclassical production function is used to analyse the effects of knowledge spillovers via entrepreneurship on economic performance of 337 German districts. To take the spatial dependence structure of the data into account, a spatial Durbin model was estimated. The importance of the choice of the appropriate weight matrix is highlighted. Positive knowledge spillover effects via entrepreneurship and competitiveness - improving the effects of entrepreneurship capital within a certain region as well as between regions - are found. However, the significance of the spatial spillover effects largely depends on the choice of the weight matrix. This is seen as evidence that positive and negative spatial spillover effects of entrepreneurship capital cancel out.

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  • Katharina Pijnenburg & Konstantin A. Kholodilin, 2014. "Do Regions with Entrepreneurial Neighbours Perform Better? A Spatial Econometric Approach for German Regions," Regional Studies, Taylor & Francis Journals, vol. 48(5), pages 866-882, May.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:5:p:866-882
    DOI: 10.1080/00343404.2012.697143
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    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • 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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