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Detecting spatial heterogeneity in predictors of firm start-up activity of Austria with geographically weighted regression

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  • Robert J. Breitenecker
  • Erich J. Schwarz

Abstract

Many studies in entrepreneurship research seek to find regional factors which can explain regional variations in firm start-up activity. Reviewing the entrepreneurship literature points out that in most studies classical global linear models are used to identify influencing factors on regional start-up activity. But estimating a global model implicates stable relationships between response and predictor variables over the whole study area. In addition to that, the spatial component of regional data is not considered in most studies although there exists a spatial dependence in regional data which can be measured by indicators for spatial autocorrelation. We estimate a geographically weighted regression model to show the variability of relationships between two different regional start-up rates and their regional determinants of Austria. The results indicate that spatial heterogeneity in predictors is present and that the global linear model is not appropriate to estimate start-up activity of Austria.

Suggested Citation

  • Robert J. Breitenecker & Erich J. Schwarz, 2011. "Detecting spatial heterogeneity in predictors of firm start-up activity of Austria with geographically weighted regression," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 12(3), pages 290-299.
    • Handle: RePEc:ids:ijesbu:v:12:y:2011:i:3:p:290-299
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    Cited by:

    1. Giulio Cainelli & Sandro Montresor & Giuseppe Vittucci Marzetti, 2014. "Spatial agglomeration and firm exit: a spatial dynamic analysis for Italian provinces," Small Business Economics, Springer, vol. 43(1), pages 213-228, June.
    2. Giuseppe Arcuri & Marc Brunetto & Nadine Levratto, 2019. "Spatial patterns and determinants of firm exit: an empirical analysis on France," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 62(1), pages 99-118, February.
    3. Sven Müller, 2012. "Identifying spatial nonstationarity in German regional firm start-up data," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 113-132, September.
    4. Giuseppe Arcuri & Nadine Levratto & Marianna Succurro, 2023. "Does commercial court organisation affect firms’ bankruptcy rate? evidence from the french judicial reform," European Journal of Law and Economics, Springer, vol. 55(3), pages 573-601, June.

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