Regional determinants of manufacturing start-ups in Greece: evidence on the effect of agglomeration economies
The paper analyses the regional determinants of manufacturing start-up ratios in Greece. Emphasis is placed upon analysing the effect of agglomeration economies, which are distinguished between urbanisation, and localisation economies. The data refer to establishments realised in the 51 Greek prefectures (NUTS III level) during 2005. Results indicate that negative urbanisation economies prevail. Localisation economies in the form of positive Marshallian and negative Jacobian externalities are observed and constitute important determinants of start-up ratios. Results regarding the effect of other factors such as expected demand and profit, cost and human resources factors are as anticipated.
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