The Impact of New Firm Formation on Regional Development in the Netherlands
25 Pages Posted: 21 Dec 2005
Date Written: November 30, 2005
Abstract
This paper examines the relationship between new firm formation and regional employment change in the Netherlands. Using a new regional data base for the period 1988-2002, we examine the time lags involved in the relationship. We also investigate whether the relationship differs by time period, by sector and by degree of urbanization. We find that the maximum effect of new businesses on regional development is reached after about six years. Our results also suggest that the overall employment impact of new-firm startups is positive but that the immediate employment effects may be small in the Netherlands. Furthermore, we find that the relation between new businesses and regional development has been stable during the period under investigation, that the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is stronger in areas with a higher degree of urbanization.
Keywords: Entrepreneurship, Regional Development, Startups, the Netherlands
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Sticking it Out: Entrepreneurial Survival and Liquidity Constraints
By Douglas Holtz-eakin, David Joulfaian, ...
-
Entrepreneurial Decisions and Liquidity Constraints
By Douglas Holtz-eakin, David Joulfaian, ...
-
Liquidity Constraints, Household Wealth and Entrepreneurship
By Annamaria Lusardi and Erik Hurst
-
What Makes an Entrepreneur? Evidence on Inheritance and Capital Constraints
-
The Absence of the African-American Owned Business: An Analysis of the Dynamics of Self-Employment