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Do Regions with Entrepreneurial Neighbors Perform Better? A Spatial Econometric Approach for German Regions

  • Katharina Pijnenburg


  • Konstantin A. Kholodilin

We use a neoclassical production function to analyze the effects of knowledge spillovers via entrepreneurship on economic performance of 337 German districts. To take the spatial dependence structure of the data into account, we estimate a spatial Durbin model. We highlight the importance of the choice of the appropriate weight matrix. We find positive knowledge spillover effects via entrepreneurship within a certain region. Between regions, entrepreneurship as a vehicle by which knowledge spills over and contributes to economic performance depends largely on the choice of the weight matrix. We see this as evidence for regionally bounded knowledge spillover effects via entrepreneurship.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p58.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p58
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  1. N. Gregory Mankiw & David Romer & David N. Weil, 1990. "A Contribution to the Empirics of Economic Growth," NBER Working Papers 3541, National Bureau of Economic Research, Inc.
  2. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  3. James Lesage & Olivier Parent, 2006. "Using the Variance Structure of the Conditional Autoregressive Spatial Specification to Model Knowledge Spillovers," Post-Print hal-00375311, HAL.
  4. Audretsch, David B & Keilbach, Max, 2003. "Entrepreneurship Capital and Economic Performance," CEPR Discussion Papers 3678, C.E.P.R. Discussion Papers.
  5. Zoltan J. Acs & David B. Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2005. "The Knowledge Spillover Theory of Entrepreneurship," Papers on Entrepreneurship, Growth and Public Policy 2005-27, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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  7. LeSage, James P. & Polasek, Wolfgang, 2006. "Incorporating Transportation Network Structure in Spatial Econometric Models of Commodity Flows," Economics Series 188, Institute for Advanced Studies.
  8. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
  9. Adela Nistor, 2009. "Assessing the Effectiveness of Human Capital Investments on the Regional Unemployment Rate in the United States: 1990 and 2000," International Regional Science Review, , vol. 32(1), pages 65-91, January.
  10. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
  11. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  12. Zoltan Acs & Catherine Armington, 2004. "Employment Growth and Entrepreneurial Activity in Cities," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 911-927.
  13. repec:oup:qjecon:v:107:y:1992:i:2:p:407-37 is not listed on IDEAS
  14. Manfred Fischer & Monika Bartkowska & Aleksandra Riedl & Sascha Sardadvar & Andrea Kunnert, 2009. "The impact of human capital on regional labor productivity in Europe," Letters in Spatial and Resource Sciences, Springer, vol. 2(2), pages 97-108, October.
  15. James Lesage & Manfred Fischer, 2008. "Spatial Growth Regressions: Model Specification, Estimation and Interpretation," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(3), pages 275-304.
  16. J. Barkley Rosser, 2009. "Introduction," Chapters, in: Handbook of Research on Complexity, chapter 1 Edward Elgar.
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