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Determinants of Entrepreneurship in French Regions: The Role of Spatial Heterogeneity

  • Marie-Estelle Binet

    (University of Rennes 1 - CREM UMR CNRS 6211, France)

  • François Facchini

    (University of Paris-Sud, Faculty Jean Monnet (France))

This paper deals with the determinants of enterprise creation in the 22 French regions from 1994 to 2003. We then estimate a dynamic panel data model which allows spatial heterogeneity to be modelled and which is compared with a specification without spatial heterogeneity. The estimation results show that an appropriate consideration of spatial heterogeneity can lead to new insights. The results show: 1) that the Holcombe effect and the income effect have a statistically significant and positive impact for all regions; 2) that the age of the population and the size of the firms have the same negative effects for all regions with the exception of Ile-de-France; 3) that at the threshold of 10%, the refugee effect only concerns 10 regions out of 22; 4) that the effect of public R&D remains insignificant for 17 of the 22 regions, but becomes statistically significant in five regions and has a positive effect in three regions only, these being those which exhibit the highest per capita public R&D expenditure levels. Globally, Anselin's (1990) hypothesis, according to which the presence of spatial heterogeneity casts doubt upon the generalizability of theories in regional science, is thus in part confirmed.

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Paper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 201312.

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Date of creation: Apr 2013
Date of revision:
Handle: RePEc:tut:cremwp:201312
Contact details of provider: Postal: CREM (UMR CNRS 6211) – Faculty of Economics, 7 place Hoche, 35065 RENNES Cedex
Phone: 02 23 23 35 47
Fax: (33) 2 23 23 35 99
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Order Information: Postal: CREM (UMR CNRS 6211) - Faculty of Economics, 7 place Hoche, 35065 Rennes Cedex - France

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  1. Marcus Dejardin, 2010. "La création d'entreprises et ses rapports au territoire," Post-Print halshs-00618267, HAL.
  2. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
  3. Marie-Estelle Binet & François Facchini, 2012. "Okun’S Law In The French Regions: A Cross-Regional Comparison," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201222, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  4. Dean, Thomas J. & Meyer, G. Dale, 1996. "Industry environments and new venture formations in U.S. manufacturing: A conceptual and empirical analysis of demand determinants," Journal of Business Venturing, Elsevier, vol. 11(2), pages 107-132, March.
  5. Audretsch, D.B. & Fritsch, M., 1993. "A Note on the Measurement of Entry Rates," Papers 93-5, Bergakademie Freiberg Technical University - Faculty of Economics and Business Administration.
  6. repec:hal:wpaper:halshs-00467900 is not listed on IDEAS
  7. Martin Koning & François Facchini, 2008. "Quelle place pour l'entrepreneur dans les théories de la croissance régionale ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00319161, HAL.
  8. Martin Carree, 2002. "Does Unemployment Affect the Number of Establishments? A Regional Analysis for US States," Regional Studies, Taylor & Francis Journals, vol. 36(4), pages 389-398.
  9. David Roodman, 2006. "How to Do xtabond2: An Introduction to "Difference" and "System" GMM in Stata," Working Papers 103, Center for Global Development.
  10. Cowling, Marc & Mitchell, Peter, 1997. "The Evolution of U.K. Self-Employment: A Study of Government Policy and the Role of the Macroeconomy," The Manchester School of Economic & Social Studies, University of Manchester, vol. 65(4), pages 427-42, September.
  11. François Facchini, 2007. "Entrepreneur et croissance économique : développements récents," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 3-3.
  12. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  13. Martin Koning & Marie-Estelle Binet & François Facchini, 2010. "Les déterminants de la dynamique entrepreneuriale dans les régions françaises (1994-2003)," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00467900, HAL.
  14. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
  15. Marcus Dejardin & Michael Fritsch, 2011. "Entrepreneurial dynamics and regional growth," Small Business Economics, Springer, vol. 36(4), pages 377-382, May.
  16. Taylor, Mark P, 1999. "Survival of the Fittest? An Analysis of Self-Employment Duration in Britain," Economic Journal, Royal Economic Society, vol. 109(454), pages C140-55, March.
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