Abstract
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.
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Nyström, K. An industry disaggregated analysis of the determinants of regional entry and exit. Ann Reg Sci 41, 877–896 (2007). https://doi.org/10.1007/s00168-007-0130-x
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DOI: https://doi.org/10.1007/s00168-007-0130-x