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New firm formation facing cultural and racial diversity

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  • Shaoming Cheng
  • Huaqun Li

Abstract

This paper is intended to examine how regional diversity in terms of cultural and racial diversity affects new firm formation in 10 disaggregated industrial sectors across US counties. Bayesian Markov Chain Monte Carlo method is used to estimate the spatial autoregressive regression models. It is suggested that regional diversity positively affects new firm formation, both in its own and neighbouring counties, in selected industries examined. Resumen Este artículo tiene por objeto examinar cómo la diversidad regional expresada en forma de diversidad cultural y racial afecta a la formación de nuevas empresas en 10 sectores industriales desagregados en condados de los Estados Unidos. Se utiliza el método de Monte Carlo bayesiano basado en cadenas de Markov para estimar los modelos de regresión espaciales autorregresivos. Se sugiere que, en las industrias seleccionadas examinadas, la diversidad regional afecta positivamente a la formación de nuevas empresas, tanto en el propio condado como en los vecinos.

Suggested Citation

  • Shaoming Cheng & Huaqun Li, 2012. "New firm formation facing cultural and racial diversity," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 759-774, November.
    • Handle: RePEc:bla:presci:v:91:y:2012:i:4:p:759-774
    DOI: 10.1111/pirs.2012.91.issue-4
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    File URL: https://doi.org/10.1111/j.1435-5957.2011.00404.x
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    2. Backman, Mikaela & Kohlhase, Janet, 2013. "The Influence of Diversity on the Formation, Survival and Growth of New Firms," Working Paper Series in Economics and Institutions of Innovation 337, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    3. Nazmun Ratna & R. Quentin Grafton & Hang To, 2017. "The ‘Paradox of Diversity’: Economic Evidence from US Cities 1980–2010," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 4(1), pages 20-37, January.
    4. Charlie Karlsson & Jonna Rickardsson & Joakim Wincent, 2021. "Diversity, innovation and entrepreneurship: where are we and where should we go in future studies?," Small Business Economics, Springer, vol. 56(2), pages 759-772, February.
    5. Thomas Kemeny, 2017. "Immigrant Diversity and Economic Performance in Cities," International Regional Science Review, , vol. 40(2), pages 164-208, March.
    6. Osama Alhendi & József Tóth & Péter Lengyel & Péter Balogh, 2021. "Tolerance, Cultural Diversity and Economic Growth: Evidence from Dynamic Panel Data Analysis," Economies, MDPI, vol. 9(1), pages 1-16, February.
    7. Colombelli, Alessandra & D'Ambrosio, Anna & Meliciani, Valentina & Francesco Quatraro,, 2016. "Explaining the industrial variety of newborn firms: The role of cultural and technological diversity," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201606, University of Turin.
    8. Andrés Rodríguez-Pose & Daniel Hardy, 2015. "Cultural Diversity and Entrepreneurship in England and Wales," Environment and Planning A, , vol. 47(2), pages 392-411, February.
    9. Haifeng Qian, 2017. "Knowledge base differentiation in urban systems of innovation and entrepreneurship," Urban Studies, Urban Studies Journal Limited, vol. 54(7), pages 1655-1672, May.
    10. Haifeng Qian, 2013. "Diversity Versus Tolerance: The Social Drivers of Innovation and Entrepreneurship in US Cities," Urban Studies, Urban Studies Journal Limited, vol. 50(13), pages 2718-2735, October.
    11. Christopher J. Boudreaux, 2020. "Ethnic diversity and small business venturing," Small Business Economics, Springer, vol. 54(1), pages 25-41, January.
    12. Jahn, Vera & Steinhardt, Max Friedrich, 2018. "Immigration and new firm formation: Evidence from a quasi-experimental setting in Germany," Ruhr Economic Papers 787, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Roxana Gutiérrez-Romero, 2020. "The contrasting effects of ethnic, cultural and immigrant diversity on entrepreneurship and job creation," Working Papers 101, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    14. Hoang, Trung Xuan & Nguyen, Thang Chien & Nga, Van Thi Le, 2022. "Impact of Internal Migration Diversity on Child Welfare: Evidence from Vietnam," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 63(2), pages 149-168, December.
    15. Sin Tian Ho, Cynthia & Wilhelmsson, Mats, 2019. "Accessibility of bank branches and new firm formation in Sweden," Working Paper Series 19/8, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.
    16. Mikaela Backman & Janet E. Kohlhase, 2022. "Labor force diversity and new firm formation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(1), pages 9-28, February.
    17. Niccolò Ghio & Massimiliano Guerini & Erik Lehmann & Cristina Rossi-Lamastra, 2015. "The emergence of the knowledge spillover theory of entrepreneurship," Small Business Economics, Springer, vol. 44(1), pages 1-18, January.
    18. Haifeng Qian & Kingsley Haynes, 2014. "Beyond innovation: the Small Business Innovation Research program as entrepreneurship policy," The Journal of Technology Transfer, Springer, vol. 39(4), pages 524-543, August.
    19. Sin Tian Ho, Cynthia & Fili, Andreas, 2020. "Dynamic financial landscapes and entrepreneurial cultures on new firm formation in different industries," Working Paper Series 20/12, Royal Institute of Technology, Department of Real Estate and Construction Management & Banking and Finance.

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