New business formation and employment growth: some evidence for the Spanish manufacturing industry

Arauzo‐Carod, Josep‐Maria; Solís, Daniel Liviano; Bofarull, Mónica Martín

doi:10.1007/s11187-007-9051-4

Cited by 38 publications

(13 citation statements)

References 33 publications

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“…2008), the Netherlands (Van Stel and Suddle 2008), Portugal (Baptista et al. 2008), Spain (Arauzo Carod et al. 2008), and the US (Acs and Mueller 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

Self‐employment and local economic performance: Evidence from US counties

Rupasingha¹,

Goetz²

2013

Papers in Regional Science

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This study explores the relationship between self-employment and income growth, employment growth, and change in poverty in metro and non-metro areas in the United States using county-level panel data. We investigate the impact of the relative size of the selfemployment sector measured by the share of non-farm proprietorships (NFPs) in total full and part-time employment on three key economic performance indicators. We first estimate an income growth model to analyse the effects of self-employment on income growth. Then we investigate the independent effects of self-employment on employment growth and changes in family poverty rates. Our results indicate that higher self-employment rates are associated with statistically significant increases over time in income and employment growth, and reductions in poverty rates in non-metro counties. We find similar effects on metro county income and employment, but not on poverty dynamics. JEL classifications: J21, L26, O18, R11

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“…2008), the Netherlands (Van Stel and Suddle 2008), Portugal (Baptista et al. 2008), Spain (Arauzo Carod et al. 2008), and the US (Acs and Mueller 2008).…”

Section: Literature Reviewmentioning

confidence: 99%

Self‐employment and local economic performance: Evidence from US counties

Rupasingha¹,

Goetz²

2013

Papers in Regional Science

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“…Oliver Falck also provided very valuable advice on econometric issues. 2 Acs and Mueller (2008); Andersson and Noseleit (this issue); Arauzo-Carod et al (2008); Audretsch and Fritsch (2002); Baptista et al (2008); Baptista and Preto (this issue); Bosma et al (this issue); Carree and Thurik (2008); Dejardin (this issue); Fritsch and Mueller (2004; Koster (this issue); van Stel and Storey (2004); Mueller et al (2008); van Stel and Suddle (2008). becomes insignificant after about another 5 years. Previous analyses also find that the magnitude of the ''wave,'' as well as the total effect of new business formation on growth, is shaped to a considerable degree by regional conditions.…”

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confidence: 95%

Why does the effect of new business formation differ across regions?

2010

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We investigate regional differences in the effect of new business formation on employment growth in West Germany. We find an inverse Ushaped relationship between the level of start-up activity and employment change. The main variables that shape the employment effects of new businesses in a region are population density, the share of medium-skilled workers, the amount of innovation activities as measured by the proportion of research and development (R&D) employees, and an entrepreneurial character of the regional technological regime. In contrast, a high share of small-business employment has a negative influence on the employment effect of start-ups. Other indicators for education, innovation activity, and labor productivity do not prove to be statistically significant.1 Aims and scope 1 Recent empirical research strongly indicates that the effect of new business formation on economic development is of a long-term nature.2 It is found that start-up rates may have a statistically significant impact on growth for a period of up to 10 years (for an overview, see Fritsch 2008). Over this time span, the effect of start-ups on growth shows considerable variation that is in most cases (countries or regions) characterized by a wave-like pattern (see Sect. 2 for details). This wave-like pattern reveals that new businesses have a positive impact on economic development in the first 1 or 2 years after formation, but that the effect then declines and, in many cases, becomes negative. In many regions, the effect becomes positive again after about 5 years, and then A. Schroeter e-mail: alexandra.schroeter@uni-jena.de 1 We are indebted to Oliver Falck (CES-ifo, Munich), Stephan Heblich (MPI, Jena), Antonio Garcia-Tabuenca (University of Alcala, Madrid), and two anonymous referees for their helpful comments on an earlier version of this manuscript. Oliver Falck also provided very valuable advice on econometric issues.

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“…Campbell (), Rigby and Essletzbichler (), Armington and Acs (), Sutaria and Hicks () in the US; Spilling () in Norway; Fotopoulos and Spence () in Greece; Kangasharju () in Finland; Arauzo‐Carod et al. () in Spain; and Tamásy and Le Heron () in New Zealand.…”

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Regional determinants of firm entry in a developing country

Calá

Manjón-Antolín

Arauzo‐Carod

2016

Papers in Regional Science

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Abstract. We analyse the determinants of firm entry in developing countries using Argentina as an illustrative case. Our main finding is that although most of the regional determinants used in previous studies analysing developed countries are also relevant here, there is a need for additional explanatory variables that proxy for the specificities of developing economies (e.g., poverty, informal economy and idle capacity). We also find evidence of a core-periphery pattern in the spatial structure of entry that seems to be mostly driven by differences in agglomeration economies. Since regional policies aiming to attract new firms are largely based on evidence from developed countries, our results raise doubts about the usefulness of such policies when applied to developing economies. JEL classification: R12, R30, C33

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New business formation and employment growth: some evidence for the Spanish manufacturing industry

Cited by 38 publications

References 33 publications

Self‐employment and local economic performance: Evidence from US counties

Self‐employment and local economic performance: Evidence from US counties

Why does the effect of new business formation differ across regions?

Regional determinants of firm entry in a developing country

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