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Regional growth regimes revisited - the case of West Germany

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  • Fritsch, Michael
  • Mueller, Pamela

Abstract

Audretsch and Fritsch (2002) proposed two explanations for the mixed evidence regarding the relationship between new firm formation and regional development. Firstly, they found evidence for the existence of long time lags needed before the main effects of new firm formation on employment change become evident. Secondly, they suggested that regions may be characterized by different growth regimes in which new firms and entrepreneurship assume different roles and accordingly lead to different effects. This paper reports the results of re-estimating the main relationships investigated by Audretsch and Fritsch (2002) in a somewhat different way. One main difference is that we now have information on a longer time-period available and have chosen shorter time intervals for the analysis. This enabled us to investigate the transition between different types of growth regimes in further detail. Furthermore, our analysis is not on the level of planning regions but on the level of districts ("Kreise") and we have explicitly accounted for spatial autocorrelation in the analysis, which turns out to be highly relevant.

Suggested Citation

  • Fritsch, Michael & Mueller, Pamela, 2004. "Regional growth regimes revisited - the case of West Germany," Freiberg Working Papers 2004,06, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
  • Handle: RePEc:zbw:tufwps:200406
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    References listed on IDEAS

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    1. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    2. van Stel, Andre & Storey, David, 2002. "Entrepreneurial growth in British regions 1980-1998," ERSA conference papers ersa02p243, European Regional Science Association.
    3. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
    4. Fritsch, Michael & Weyh, Antje, 2004. "How large are the direct employment effects of new businesses? An empirical investigation," Freiberg Working Papers 2004,05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    5. Audretsch, David B. & Fritsch, Michael, 1993. "A Note on the Measurement of Entry Rates," Freiberg Working Papers 1993,05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    6. Zoltan J Acs & Catherine Armington, 2003. "Endogenous Growth and Entrepreneurial Activity in Cities," Working Papers 03-02, Center for Economic Studies, U.S. Census Bureau.
    7. Baldwin,John R. & Gorecki,Paul, 1998. "The Dynamics of Industrial Competition," Cambridge Books, Cambridge University Press, number 9780521633574, Fall.
    8. Michael Fritsch & Sandra Kublina, 2015. "Entrepreneurship,Growth, Regional Growth Regimes," Jena Economic Research Papers 2015-002, Friedrich-Schiller-University Jena.
    9. Michael Fritsch & Antje Weyh, 2006. "How Large are the Direct Employment Effects of New Businesses? An Empirical Investigation for West Germany," Small Business Economics, Springer, vol. 27(2), pages 245-260, October.
    10. David Audretsch & Michael Fritsch, 2003. "Linking Entrepreneurship to Growth: The Case of West Germany," Industry and Innovation, Taylor & Francis Journals, vol. 10(1), pages 65-73.
    11. Fritsch, Michael & Mueller, Pamela, 2004. "The effect of new firm formation on regional development over time," Freiberg Working Papers 2004,01, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    12. David B. Audretsch & Roy Thurik, 2001. "Linking Entrepreneurship to Growth," OECD Science, Technology and Industry Working Papers 2001/2, OECD Publishing.
    13. Wennekers, Sander & Thurik, Roy, 1999. "Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August.
    14. Michael Fritsch & Pamela Mueller, 2004. "The Effects of New Business Formation on Regional Development over Time," Papers on Entrepreneurship, Growth and Public Policy 2004-36, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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    Cited by:

    1. Michael Fritsch & Pamela Mueller, 2007. "The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs," Journal of Evolutionary Economics, Springer, vol. 17(3), pages 299-315, June.
    2. Michael Fritsch, 2004. "Entrepreneurship, entry and performance of new business compared in two growth regimes: East and West Germany," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 525-542, December.
    3. Felden, Carsten & Bock, Heiko & Gräning, André & Molotowa, Lana & Saat, Jan, 2006. "Evaluation von Algorithmen zur Textklassifikation," Freiberg Working Papers 2006,10, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    4. Emilia Vázquez & Sofia Gomes & Elvira Vieira, 2011. "Entrepreneurship and Economic Growth in Spanish and Portuguese Regions," ERSA conference papers ersa10p1537, European Regional Science Association.
    5. Fritsch, Michael & Stützer, Michael, 2006. "Die Geografie der Kreativen Klasse in Deutschland," Freiberg Working Papers 2006,11, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    6. Minuk, Olga & Rossaro, Fabiana & Walther, Ursula, 2005. "Zur Reform der Einlagensicherung in Weißrussland - Kritische Analyse und Vergleich mit dem Deutschen Einlagensicherungssystem," Freiberg Working Papers 2005,12, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    7. Xu, Wan & Lambert, Dayton M., 2011. "Business Establishment Growth in the Appalachian Region, 2000-2007: An Application of Smooth Transition Spatial Process Models," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 43(03), August.
    8. Grosse, Diana & Ullmann, Robert & Weyh, Enrico, 2006. "Die Führung innovativer Teams unter Berücksichtigung rechtlicher und psychologischer Aspekte," Freiberg Working Papers 2006,05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    9. Moutinho, Ricardo & Au-Yong-Oliveira, Manuel & Coelho, Arnaldo & Manso, José Pires, 2015. "Beyond the “Innovation's Black-Box”: Translating R&D outlays into employment and economic growth," Socio-Economic Planning Sciences, Elsevier, vol. 50(C), pages 45-58.
    10. Rogler, Silvia, 2006. "Vergleichbarkeit von Gesamt- und Umsatzkostenverfahren: Auswirkungen auf die Jahresabschlussanalyse," Freiberg Working Papers 2006,06, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    11. Enke, Margit & Greschuchna, Larissa, 2005. "Aufbau von Vertrauen in Dienstleistungsinteraktionen durch Instrumente der Kommunikationspolitik - dargestellt am Beispiel der Beratung kleiner und mittlerer Unternehmen -," Freiberg Working Papers 2005,06, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.

    More about this item

    Keywords

    Regional growth; new firms; entrepreneurship; growth regimes; time lags.; Regionalentwicklung; Unternehmensgründungen; Entrepreneurship; Wachstumsregime; Time Lags.;

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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