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Methods of analyzing the relationship between new business formation and regional development

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  • Michael Fritsch

    () (Friedrich Schiller University Jena, School of Economics and Business Administration)

Abstract

The paper reviews the approaches that have been followed for analyzing the effect of new business formation on regional development. It begins with an outline of how start-ups may affect regional development. In dealing with different ways of empirically assessing these effects, I particularly stress the importance of indirect effects and of accounting for sufficiently long time lags. Finally, I discuss the issue of causality as well as avenues for further research about this important topic.

Suggested Citation

  • Michael Fritsch, 2012. "Methods of analyzing the relationship between new business formation and regional development," Jena Economic Research Papers 2012-064, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2012-064
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    File URL: http://pubdb.wiwi.uni-jena.de/pdf/wp_2012_064.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Heike Delfmann & Sierdjan Koster, 2016. "The effect of new business creation on employment growth in regions facing population decline," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 33-54, January.
    2. Heike Delfmann & Sierdjan Koster, 2014. "New firm formation and its effect on employment growth in declining regions," ERSA conference papers ersa14p1133, European Regional Science Association.
    3. Balázs Páger, 2014. "The entrepreneurial performance of the Central and Eastern European regions," ERSA conference papers ersa14p1631, European Regional Science Association.

    More about this item

    Keywords

    Entrepreneurship; new business formation; employment: regional development;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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