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Firm Births And Employment Change In The British Counties: 1981–89

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  • Brian Ashcroft
  • James H. Love

Abstract

ABSTRACT This paper explores the relationship between firm formation and net employment change at the country level of Britain during the 1980s. An augmented factor‐demand model is specified and estimated across the 64 countries of Britain. The results offer support for the view that firm formation is strongly associated with net employment change in British countries. Moreover, when allowance is made for feedback effects due to the estimated simultaneity between new starts and net employment the impact of firm formation on estimated job change is even greater.

Suggested Citation

  • Brian Ashcroft & James H. Love, 1996. "Firm Births And Employment Change In The British Counties: 1981–89," Papers in Regional Science, Wiley Blackwell, vol. 75(4), pages 483-500, October.
    • Handle: RePEc:bla:presci:v:75:y:1996:i:4:p:483-500
    DOI: 10.1111/j.1435-5597.1996.tb00675.x
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    Cited by:

    1. André van Stel & David Storey, 2002. "The Relationship between Firm Births and Job Creation," Tinbergen Institute Discussion Papers 02-052/3, Tinbergen Institute.
    2. Rui Baptista & Vítor Escária & Paulo Madruga, 2008. "Entrepreneurship, regional development and job creation: the case of Portugal," Small Business Economics, Springer, vol. 30(1), pages 49-58, January.
    3. Bernal, Carolina & Prem, Mounu & Vargas, Juan F. & Ortiz, Mónica, 2024. "Peaceful entry: Entrepreneurship dynamics during Colombia’s peace agreement," Journal of Development Economics, Elsevier, vol. 166(C).
    4. Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth – Past experiences, current knowledge and policy implications," Working Papers 2010:2, Swedish Entrepreneurship Forum.
    5. Fritsch, Michael & Mueller, Pamela, 2004. "The effect of new firm formation on regional development over time," Freiberg Working Papers 2004/01, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    6. Aleksandra Zygmunt, 2017. "Innovation as a Significant Competitiveness Stimulant for Enterprises and Regions (Innowacje jako kluczowy czynnik stymulujacy konkurencyjnosc przedsiebiorstw i regionow)," Research Reports, University of Warsaw, Faculty of Management, vol. 1(23), pages 119-125.
    7. Semiha Turgut & Aliye Ahu Akgun, 2015. "The Causality Between Entrepreneurial Activities and Regional Economic Growth: Case of Turkey," ERSA conference papers ersa15p1093, European Regional Science Association.
    8. Marcus Dejardin, 2011. "Linking net entry to regional economic growth," Small Business Economics, Springer, vol. 36(4), pages 443-460, May.
    9. Andre van Stel & Bart Diephuis, 2004. "Business dynamics and employment growth: a cross-country analysis," Papers on Entrepreneurship, Growth and Public Policy 2004-32, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    10. Ron Botham & Andrew Graves, 2011. "Regional variations in new firm job creation: The contribution of high growth start-ups," Local Economy, London South Bank University, vol. 26(2), pages 95-107, March.
    11. Cole, Ismail M., 2000. "Spatial Differences in Manufacturing Firm Births and Deaths and Local Economic Conditions: Evidence from Pennsylvania," The Review of Regional Studies, Southern Regional Science Association, vol. 30(2), pages 215-236, Fall.
    12. Learmonth, D. & McGregor, P.G. & Swales, J.K. & Turner, K.R. & Yin, Y.P., 2007. "The importance of the regional/local dimension of sustainable development: An illustrative Computable General Equilibrium analysis of the Jersey economy," Economic Modelling, Elsevier, vol. 24(1), pages 15-41, January.
    13. Charlie Karlsson, 2012. "Entrepreneurship, social capital, governance and regional economic development: an introduction," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 1, pages 1-26, Edward Elgar Publishing.
    14. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.
    15. Dawson, Christopher & Henley, Andrew & Latreille, Paul L., 2009. "Why Do Individuals Choose Self-Employment?," IZA Discussion Papers 3974, Institute of Labor Economics (IZA).

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