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The Geography Of Firm Formation In New Zealand

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  • CHRISTINE TAMÁSY
  • RICHARD LE HERON

Abstract

New Zealand's regions exhibit marked spatial variations in firm formation, with the urban areas being less entrepreneurial than the rest of the country, when the analysis controls for the varying sizes of regions. This empirical finding reflects differences in industry structures, with a greater presence of firm births in manufacturing industries and business services in more peripheral and less urbanised areas, especially on the South Island of New Zealand. Using the business demographic statistics (BDS) database by Statistics New Zealand we develop a regression model to explain spatial variations in firm formations over the period 2000–2005. The following explanatory factors are found to be of central importance for firm formations in the New Zealand context: concentration, firm size, population, population growth, income growth and specialisation. Implications of the findings for policy makers and politicians in New Zealand are discussed.

Suggested Citation

  • Christine Tamásy & Richard Le Heron, 2008. "The Geography Of Firm Formation In New Zealand," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 99(1), pages 37-52, February.
    • Handle: RePEc:bla:tvecsg:v:99:y:2008:i:1:p:37-52
    DOI: 10.1111/j.1467-9663.2008.00438.x
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    References listed on IDEAS

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    Cited by:

    1. Nabamita Dutta & Russell Sobel, 2016. "Does corruption ever help entrepreneurship?," Small Business Economics, Springer, vol. 47(1), pages 179-199, June.
    2. Calá, Carla Daniela, 2014. "Regional issues on firm entry and exit in Argentina: core and peripheral regions," Nülan. Deposited Documents 2023, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    3. Carla Daniela Calá & Miguel Manjón-Antolín & Josep-Maria Arauzo-Carod, 2016. "Regional determinants of firm entry in a developing country," Papers in Regional Science, Wiley Blackwell, vol. 95(2), pages 259-279, June.
    4. Zizi Goschin & Mihai Antonia & Horia Tigau, 2021. "Entrepreneurship Recovery in Romania after the Great Recession. A Dynamic Spatial Panel Approach," Sustainability, MDPI, vol. 13(19), pages 1-12, September.
    5. Andrew G Ross & John Adams & Kenny Crossan, 2015. "Entrepreneurship and the spatial context: A panel data study into regional determinants of small growing firms in Scotland," Local Economy, London South Bank University, vol. 30(6), pages 672-688, September.
    6. Novosák Jiří & Novosáková Jana & Hájek Oldřich & Koleňák Jiří, 2018. "Spatial Dimension of Czech Enterprise Support Policy: Where are Public Expenditures Allocated?," Review of Economic Perspectives, Sciendo, vol. 18(4), pages 333-351, December.
    7. Zizi Goschin, 2020. "What makes new firms resilient? A spatial analysis for Romania," Regional Science Policy & Practice, Wiley Blackwell, vol. 12(5), pages 913-930, October.
    8. Calá, Carla Daniela & Manjón-Antolín, Miguel & Arauzo-Carod, Josep-Maria, 2017. "Regional determinants of exit across firms' size: evidence from a developing country," Nülan. Deposited Documents 2548, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    9. Andrew Ross, 2011. "Regional Determinants of Entrepreneurship in a Small Economy: Panel Data Evidence from Scotland," ERSA conference papers ersa11p848, European Regional Science Association.

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