IDEAS home Printed from https://ideas.repec.org/p/hhs/cesisp/0142.html
   My bibliography  Save this paper

Regional Institutional Environment and Swedish Regional New Firm Formation

Author

Listed:
  • Nyström, Kristina

    (Division of Economics KTH and Ratio Institute)

Abstract

This paper uses an institutional approach to investigate the relationship between the regional institutional environment and regional new firm formation. The importance of perceived attitudes regarding private enterprises, local taxes, political majority, the size of the government sector and perceived rules and bureaucracy on new firm formation in 286 Swedish municipalities are investigated. The empirical findings show that perceived positive attitudes toward private enterprises and political governance by a right bloc majority tend to have positive effects on regional new firm formation. A large local government sector, on the other hand, tends to have negative effects on regional new firm formation. The paper also explore if the effect of different aspects of regional institutional environment on new firm formation are similar across industries. The pattern in the private service sector industries is most similar to the overall pattern in the economy, while the only variable reflecting the regional institutional environment that influences new firm formation in manufacturing industries is perceived rules and bureaucracy.

Suggested Citation

  • Nyström, Kristina, 2008. "Regional Institutional Environment and Swedish Regional New Firm Formation," Working Paper Series in Economics and Institutions of Innovation 142, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  • Handle: RePEc:hhs:cesisp:0142
    as

    Download full text from publisher

    File URL: https://static.sys.kth.se/itm/wp/cesis/cesiswp142.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andreas Freytag & Roy Thurik, 2010. "Entrepreneurship and its Determinants in a Cross-Country Setting," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 157-170, Springer.
    2. Bengt Johannisson & Marcela Ramírez-Pasillas & Gösta Karlsson, 2002. "The institutional embeddedness of local inter-firm networks: a leverage for business creation," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 14(4), pages 297-315, October.
    3. Stefano Scarpetta & Philip Hemmings & Thierry Tressel & Jaejoon Woo, 2002. "The Role of Policy and Institutions for Productivity and Firm Dynamics: Evidence from Micro and Industry Data," OECD Economics Department Working Papers 329, OECD Publishing.
    4. Henrekson, Magnus & Johansson, Dan, 1999. "Institutional Effects on the Evolution of the Size Distribution of Firms," Small Business Economics, Springer, vol. 12(1), pages 11-23, February.
    5. Davidsson, Per & Henrekson, Magnus, 2002. "Determinants of the Prevalence of Start-Ups and High-Growth Firms," Small Business Economics, Springer, vol. 19(2), pages 81-104, September.
    6. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
    7. Charlie Karlsson & Kristina Nyström, 2011. "Knowledge Accessibility and New Firm Formation," Chapters, in: Sameeksha Desai & Peter Nijkamp & Roger R. Stough (ed.), New Directions in Regional Economic Development, chapter 9, Edward Elgar Publishing.
    8. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    9. Sjoerd Beugelsdijk & Niels Noorderhaven, 2004. "Entrepreneurial attitude and economic growth: A cross-section of 54 regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 199-218, June.
    10. Peter Johnson & Simon Parker, 1996. "Spatial Variations in the Determinants and Effects of Firm Births and Deaths," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 679-688.
    11. Henrekson, Magnus & Rosenberg, Nathan, 2001. "Designing Efficient Institutions for Science-Based Entrepreneurship: Lessons from the US and Sweden," The Journal of Technology Transfer, Springer, vol. 26(3), pages 207-231, June.
    12. Howard J. Wall & Yannis Georgellis, 2000. "What makes a region entrepreneurial? Evidence from Britain," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 34(3), pages 385-403.
    13. Aki Kangasharju, 2000. "Regional variations in firm formation: Panel and cross-section data evidence from Finland," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(4), pages 355-373.
    14. André Stel & David Storey & A. Thurik, 2007. "The Effect of Business Regulations on Nascent and Young Business Entrepreneurship," Small Business Economics, Springer, vol. 28(2), pages 171-186, March.
    15. Magnus Henrekson, 2005. "Entrepreneurship: a weak link in the welfare state?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(3), pages 437-467, June.
    16. Laura Alfaro & Andrew Charlton, 2006. "International Financial Integration and Entrepreneurship," CEP Discussion Papers dp0755, Centre for Economic Performance, LSE.
    17. Christian Bjørnskov & Nicolai Foss, 2010. "Economic Freedom and Entrepreneurial Activity: Some Cross-Country Evidence," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 201-225, Springer.
    18. Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
    19. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-368, June.
    20. David Audretsch & Michael Fritsch, 1999. "The Industry Component of Regional New Firm Formation Processes," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 239-252, November.
    21. Rui Baptista, 2004. "Culture, Institutions and Government Attitudes towards New Firm Entry," Papers on Entrepreneurship, Growth and Public Policy 2004-39, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    22. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
    23. Kevin Thomas, 2000. "Creating Regional Cultures of Innovation? The Regional Innovation Strategies in England and Scotland," Regional Studies, Taylor & Francis Journals, vol. 34(2), pages 190-198.
    24. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    25. Mihir Desai & Paul Gompers & Josh Lerner, 2003. "Institutions, Capital Constraints and Entrepreneurial Firm Dynamics: Evidence from Europe," NBER Working Papers 10165, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    2. Vadim Islamutdinov, 2016. "Evolution and Specificity of the Economic Institutions of Khanty-Mansi Autonomous Okrug — Yugra," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(2), pages 463-470.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kristina Nyström, 2012. "Regional Institutional Environment and New Firm Formation," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), The Regional Economics of Knowledge and Talent, chapter 8, Edward Elgar Publishing.
    2. Kristina Nyström, 2008. "The institutions of economic freedom and entrepreneurship: evidence from panel data," Public Choice, Springer, vol. 136(3), pages 269-282, September.
    3. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    4. Barinova, Vera (Баринова, Вера) & Zemtsov, Stepan (Земцов, Степан) & Tsareva, Yulia (Царева, Юлия), 2018. "Review of Empirical Studies of Factors of Entrepreneurial Activity [Обзор Эмпирических Исследований Факторов Предпринимательской Активности]," Working Papers 031830, Russian Presidential Academy of National Economy and Public Administration.
    5. Frank Lasch & Frank Robert & Frédéric Roy, 2013. "Regional determinants of ICT new firm formation," Small Business Economics, Springer, vol. 40(3), pages 671-686, April.
    6. Niranjan Chipalkatti & Jonathan P. Doh & Meenakshi Rishi, 2011. "Institutional quality, knowledge spillovers and entrepreneurship," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 4(4), pages 307-329.
    7. Paul A. Coomes & Jose Fernandez & Stephan F. Gohmann, 2013. "The Rate of Proprietorship Among Metropolitan Areas: The Impact of the Local Economic Environment and Capital Resources," Entrepreneurship Theory and Practice, , vol. 37(4), pages 745-770, July.
    8. Sjoerd Beugelsdijk & Niels Noorderhaven, 2004. "Entrepreneurial attitude and economic growth: A cross-section of 54 regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 38(2), pages 199-218, June.
    9. Sjoerd Beugelsdijk, 2010. "Entrepreneurial Culture, Regional Innovativeness and Economic Growth," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 129-154, Springer.
    10. Kristina Nyström, 2014. "Business regulation and red tape in the entrepreneurial economy," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Agglomeration, Clusters and Entrepreneurship, chapter 13, pages 283-300, Edward Elgar Publishing.
    11. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    12. Peter van der Zwan & Ingrid Verheul & Roy Thurik & Isabel Grilo, 2009. "Entrepreneurial Progress: Climbing the Entrepreneurial Ladder in Europe and the US," Tinbergen Institute Discussion Papers 09-070/3, Tinbergen Institute, revised 17 Mar 2010.
    13. Aleksandrova, E. & Verkhovskaya, O., 2015. "Institutional determinants of necessity-driven entrepreneurship," Working Papers 6434, Graduate School of Management, St. Petersburg State University.
    14. Christian Hundt & Rolf Sternberg, 2016. "Explaining new firm creation in Europe from a spatial and time perspective: A multilevel analysis based upon data of individuals, regions and countries," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 223-257, June.
    15. Axel Dreher & Martin Gassebner, 2013. "Greasing the wheels? The impact of regulations and corruption on firm entry," Public Choice, Springer, vol. 155(3), pages 413-432, June.
    16. Sunny Li Sun & Weilei (Stone) Shi & David Ahlstrom & Li (Rachel) Tian, 2020. "Understanding institutions and entrepreneurship: The microfoundations lens and emerging economies," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 957-979, December.
    17. Dutta, Nabamita & Meierrieks, Daniel, 2021. "Financial development and entrepreneurship," International Review of Economics & Finance, Elsevier, vol. 73(C), pages 114-126.
    18. Axel Dreher & Martin Gassebner, 2007. "Greasing the Wheels of Entrepreneurship? The Impact of Regulations and Corruption on Firm Entry," KOF Working papers 07-166, KOF Swiss Economic Institute, ETH Zurich.
    19. Zoltan Acs & Emma Lappi, 2021. "Entrepreneurship, culture, and the epigenetic revolution: a research note," Small Business Economics, Springer, vol. 56(4), pages 1287-1307, April.
    20. Rodrigues Brás Gonçalo & Soukiazis Elias, 2019. "The Determinants of Entrepreneurship at the Country Level: A Panel Data Approach," Entrepreneurship Research Journal, De Gruyter, vol. 9(4), pages 1-17, October.

    More about this item

    Keywords

    institutions; new firm formation; regions;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:cesisp:0142. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Vardan Hovsepyan (email available below). General contact details of provider: https://edirc.repec.org/data/cekthse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.