The Annals of Regional Science

, Volume 41, Issue 4, pp 877–896 | Cite as

An industry disaggregated analysis of the determinants of regional entry and exit

  • Kristina NyströmEmail author
Original Paper


Empirical research by, among others, Armington and Acs (Reg Stud 36:33–45, 2002) show that regional determinants of new firm formation differ between industries. This paper reinvestigates the regional determinants of entry and exit considering these findings using panel data methods at three different levels of aggregation. Agglomeration, in terms of localisation economies, is unequivocally found to be positive for regional new firm formation, but does not necessarily prevent firms from exiting. The results also show that industry structure is a more important explanatory variable for differences between entry and exit rates across regions than regional factors.

JEL Classification

L1 R12 C33 


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Copyright information

© Springer-Verlag 2007

Authors and Affiliations

  1. 1.The Ratio InstituteStockholmSweden

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