The relationship between start-ups, market mobility and employment growth: An empirical analysis for Dutch regions
Recent literature suggests that two types of competition may contribute to macro-economic performance: the extent of new-firm entry and the extent of competition among incumbent firms. In the present paper we explain employment growth at the region-sector level using direct indicators for both these types of competition -the start-up rate and the market mobility rate- as main independent variables. While previous studies in this field measured competition among incumbent firms in an indirect way, we use a direct measure called market mobility. The empirical analysis reiterates existing results in that we find the long-term economic effect of start-ups to be bigger than the short-term effect. We also find empirical indications that this long-term effect consist of two significant parts. First, the most successful start-ups grow out to become high-growth firms, and second, the entry of new firms stimulates incumbent firms to perform better.
|Date of creation:||06 Sep 2011|
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- Josep Arauzo Carod & Daniel Liviano Solís & Mònica Martín Bofarull, 2008.
"New business formation and employment growth: some evidence for the Spanish manufacturing industry,"
Small Business Economics,
Springer, vol. 30(1), pages 73-84, January.
- Arauzo Carod, Josep Maria & Liviano Solís, Daniel & Martín Bofarull, Mònica, 2006. "New business formation and employment growth: some evidence for the Spanish manufacturing industry," Working Papers 2072/3686, Universitat Rovira i Virgili, Department of Economics.
- André van Stel & David Storey & Pamela Mueller, 2006. "The effects of new firm formation on regional development over time: The case of Great Britain," Scales Research Reports H200618, EIM Business and Policy Research.
- Pamela Mueller & André van Stel & David J. Storey, 2006. "The effects of new firm formation on regional development over time: The case of Great Britain," Papers on Entrepreneurship, Growth and Public Policy 2006-24, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Adriaan Van Stel & David Storey, 2004. "The Link between Firm Births and Job Creation: Is there a Upas Tree Effect?," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 893-909.
- Adriaan J. van Stel & David J. Storey, 2004. "The link between firm births and job creation: Is there a Upas Tree effect?," Papers on Entrepreneurship, Growth and Public Policy 2004-33, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- André Stel & Kashifa Suddle, 2008. "The impact of new firm formation on regional development in the Netherlands," Small Business Economics, Springer, vol. 30(1), pages 31-47, January.
- van Stel, A.J. & Suddle, K., 2005. "The Impact of New Firm Formation on Regional Development in the Netherlands," ERIM Report Series Research in Management ERS-2005-075-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- André van Stel & Kashifa Suddle, 2006. "The Impact of New Firm Formation on Regional Development in the Netherlands," Scales Research Reports H200604, EIM Business and Policy Research.
- André van Stel & Kashifa Suddle, 2005. "The Impact of New Firm Formation on Regional Development in the Netherlands," Scales Research Reports H200503, EIM Business and Policy Research.
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