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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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    3. 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.
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    Keywords

    social networks; economic geography; Crowdfunding; gravity;
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