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Regional Determinants of Entrepreneurship in a Small Economy: Panel Data Evidence from Scotland

  • Andrew Ross


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    This paper analyses the spatial variation of new entrepreneurial activity across 32 Scottish regions for the period 1998-2007. Entrepreneurship is widely recognised as a key determinant of economic growth, regional prosperity and sustainable development. Using data from the Value Added Tax (VAT) register, this paper estimates spatial variation in new entrepreneurial activity using a panel data model. Results show that there is considerable variation in entrepreneurship across Scottish regions and that this variation may be explained by demand and supply factors, policy and cultural factors and agglomeration benefits. Given that Scotland has recently suffered from low levels of entrepreneurship compared with other parts of the UK and similar sized smaller countries, this paper provides relevant and timely findings, as Scotland attempts to recover from the recent recession.

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    Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p848.

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    Date of creation: Sep 2011
    Date of revision:
    Handle: RePEc:wiw:wiwrsa:ersa11p848
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    1. Richard Florida & Zoltan Acs & Sam Youl Lee, 2004. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Papers on Entrepreneurship, Growth and Public Policy 2004-17, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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    15. P. Mueller, 2006. "Entrepreneurship in the Region: Breeding Ground for Nascent Entrepreneurs?," Small Business Economics, Springer, vol. 27(1), pages 41-58, August.
    16. Miyase Yesim Köksal, 2003. "Regional Variation in New Firm Formation in Turkey: Cross-Section and Panel Data Evidence," ERSA conference papers ersa03p263, European Regional Science Association.
    17. Su-wan Wang, 2006. "Determinants of New Firm Formation in Taiwan," Small Business Economics, Springer, vol. 27(4), pages 313-321, December.
    18. Beaudry, Catherine & Schiffauerova, Andrea, 2009. "Who's right, Marshall or Jacobs? The localization versus urbanization debate," Research Policy, Elsevier, vol. 38(2), pages 318-337, March.
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