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The role of distance and social networks in the geography of crowdfunding: evidence from France

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  • Sylvain Dejean

    (CEREGE [Poitiers, La Rochelle] - Centre de recherche en gestion [EA 1722] - IAE Poitiers - Institut d'Administration des Entreprises (IAE) - Poitiers - UP - Université de Poitiers = University of Poitiers - UP - Université de Poitiers = University of Poitiers - ULR - La Rochelle Université)

Abstract

This article aims to estimate the cost of distance in the geographical flow of crowdfunding, and to show how social ties between the 94 French metropolitan regions shape the geography of funding. Our analysis draws upon a unique database provided by the French leader in rewards-based crowdfunding. The main result is that the elasticity of distance remains important (around 0.5), and that social ties between regions determine the flow of funding. Doubling the number of immigrants in a region increases the number of investments by 24% and reduces the impact of distance.

Suggested Citation

  • Sylvain Dejean, 2019. "The role of distance and social networks in the geography of crowdfunding: evidence from France," Post-Print hal-01645147, HAL.
    • Handle: RePEc:hal:journl:hal-01645147
    DOI: 10.1080/00343404.2019.1619924
    Note: View the original document on HAL open archive server: https://hal.science/hal-01645147v2
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    6. Francesca Di Pietro & Francesca Masciarelli, 2022. "The Effect of Local Religiosity on Financing Cross-Regional Entrepreneurial Projects Via Crowdfunding (Local Religiosity and Crowdfinancing)," Journal of Business Ethics, Springer, vol. 178(2), pages 429-443, June.
    7. Dan Su & Xiaoqian Fang & Qing Wu & Yu Cao, 2022. "Exploring the Spatiotemporal Integration Evolution of the Urban Agglomeration through City Networks," Land, MDPI, vol. 11(4), pages 1-18, April.
    8. Jing Wang & Yaping Zhang & Guofu Yang & Yinyi Wang & Xiaomeng Cheng & Bin Xu, 2023. "Spatial Reconstruction of Traditional Villages towards Synergistic Development in the Fuchun River Basin Based on the Gravity Model," Land, MDPI, vol. 12(5), pages 1-24, May.
    9. Douglas S. Noonan & Shiri M. Breznitz & Sana Maqbool, 2021. "Looking for a change in scene: analyzing the mobility of crowdfunding entrepreneurs," Small Business Economics, Springer, vol. 57(2), pages 685-703, August.
    10. Xiao Feng & Chang Pan & Fengying Xu, 2024. "The Spatial Structure and Influencing Factors of the Tourism Economic Network in the Yangtze River Delta Urban Agglomeration," Tourism and Hospitality, MDPI, vol. 5(1), pages 1-20, February.
    11. Ciro Troise & Enrico Battisti & Michael Christofi & Nina Jorien Vulpen & Shlomo Tarba, 2023. "How Can SMEs Use Crowdfunding Platforms to Internationalize? The Role of Equity and Reward Crowdfunding," Management International Review, Springer, vol. 63(1), pages 117-159, February.
    12. Cai, Wanxiang & Polzin, Friedemann & Stam, Erik, 2021. "Crowdfunding and social capital: A systematic review using a dynamic perspective," Technological Forecasting and Social Change, Elsevier, vol. 162(C).

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    Keywords

    social networks; economic geography; Crowdfunding; gravity;
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