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Panel Data Models of New Firm Formation in New England

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  • Jitendra Parajuli
  • Kingsley E. Haynes

Abstract

This study examines the impact of the determinants of new firm formation in New England at the county level from 1999 to 2009. Based on the Spatial Durbin panel model that accounts for spillover effects, it is found that population density and human capital positively affect single-unit firm births within a county and its neighbors. Population growth rate also exerts a significant positive impact on new firm formation, but most of the effect is from spatial spillovers. On the contrary, the ratio of large to small firm in terms of employment size and unemployment rate negatively influence single-unit firm births both within counties and among neighbors. However, there is no significant impact of local financial capital and personal income growth on new firm formation.

Suggested Citation

  • Jitendra Parajuli & Kingsley E. Haynes, 2017. "Panel Data Models of New Firm Formation in New England," REGION, European Regional Science Association, vol. 4, pages 65-76.
    • Handle: RePEc:wiw:wiwreg:region_4_3_167
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    1. Shiqin Liu & Haifeng Qian & Kingsley E. Haynes, 2021. "Entrepreneurship in Small Cities: Evidence From U.S. Micropolitan Areas," Economic Development Quarterly, , vol. 35(1), pages 3-21, February.
    2. Andrés-Rosales, Roldán & Bustamante Lemus, Carlos & Ramírez Argumosa, Giovanna Saraí, 2018. "Social Exclusion and Economic growth in the Mexican Regions: A Spatial Approach," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 40, pages 57-78.
    3. Leobardo de Jesús-Almonte & Roldán Andrés-Rosales & Yolanda Carbajal-Suárez, 2020. "Spatial analysis of manufacturing employment in Mexico, 1984-2013," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 84(3), pages 91-128, February.

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