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An Exploratory Analysis of New Firm Formation in New England

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  • Jitendra Parajuli
  • Kingsley Haynes

Abstract

New firms are important for creating employment opportunities and economic growth. Thus, regions often encourage policies to attract new firms. However, the determinants of new firm formation, such as human capital, personal income, infrastructure, and cultural diversity, are uneven across regions. Regions that have the right mix of factors are more likely attract new firms compared to other areas. This implies that new firm births vary spatially and that there is always an uncertainty associated with new firm formation. Using the Shannon's entropy-based approach, this paper examines the dynamics of single-unit firm births at the county level in New England from 1999 to 2006.

Suggested Citation

  • Jitendra Parajuli & Kingsley Haynes, 2013. "An Exploratory Analysis of New Firm Formation in New England," ERSA conference papers ersa13p274, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa13p274
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    More about this item

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General

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