The effect of new firm formation on regional development over time

Arbeitspapier

In our analysis of the impact of new firm formation on regional employment change we identified considerable time lags. We investigated the structure and extent of these time lags by applying the Almon lag model and found that new firms can have both a positive and a negative effect on regional employment. The results indicate that the indirect effects of new firm formation (crowding-out of competitors, improvement of supply conditions and improved competitiveness) are of greater magnitude than the direct effect, i.e., the jobs that are created in the new businesses. The peak of the positive impact of new firms on regional development is reached about eight years after the new firms have been started.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Freiberger Arbeitspapiere ; No. 2004/01

Classification and Topics

• Classification: Wirtschaft ; New Firms; Startups ; Economic Development: Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure ; Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
• Subject: Regional growth ; new firms ; entrepreneurship ; time lags ; Regionalentwicklung ; Unternehmensgründungen ; Entrepreneurship ; Time Lags ; Unternehmensgründung ; Entrepreneurship-Ansatz ; Regionale Entwicklung ; Lag-Modell ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Fritsch, Michael ; Mueller, Pamela
• Event: Veröffentlichung
• (who): Technische Universität Bergakademie Freiberg, Fakultät für Wirtschaftswissenschaften
• (where): Freiberg
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/48387
• Last update: 10.03.2025, 11:43 AM CET