The Impact of New Firm Formation on Regional Development in the Netherlands

25 Pages Posted: 21 Dec 2005

See all articles by Andre J. van Stel

Andre J. van Stel

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics

Kashifa Suddle

EIM Netherlands - Business and Policy Research

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

van Stel, Andre J. and Suddle, Kashifa, The Impact of New Firm Formation on Regional Development in the Netherlands (November 30, 2005). ERIM Report Series Reference No. ERS-2005-075-ORG. Available at SSRN: https://ssrn.com/abstract=863028

Andre J. Van Stel (Contact Author)

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Economics ( email )

Kahlaische Strasse 10
D-07745 Jena, 07745
Germany

Kashifa Suddle

EIM Netherlands - Business and Policy Research

Postbus 7001
2701 AA Zoetermeer
Netherlands

Register to save articles to
your library

Register

Paper statistics

Downloads
92
Abstract Views
977
rank
278,387
PlumX Metrics