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Determinants of New Companies’ Formation in Romania at Regional Level. A Fixed Effects Model (FEM) Approach

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  • Dalina-Maria Andrei

    (Institute of Economic Forecasting)

Abstract

This below article will empirically analyse the determinants of new companies’ formation basing on a panel data, covering the period 2010-2019, for 42 counties (including Bucharest municipality) of Romania. An OLS regression equation will be employed with new companies’ formation as dependent variable, and regional GDP, existing entrepreneurship, density of population, immigrants and unemployment rate as independent ones. We estimate the model with cross sections and/or with time fixed and/or random effects and we will also use an LSDV model using dummy variables in order to observe the similarities. Decisions in using a period fixed effect model FEM will be based on Hausman test and redundancy test under Eviews environment. Most of determinants considered will be found significant in their influences on new companies’ formation in Romanian counties.

Suggested Citation

  • Dalina-Maria Andrei, 2021. "Determinants of New Companies’ Formation in Romania at Regional Level. A Fixed Effects Model (FEM) Approach," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 18-27, August.
    • Handle: RePEc:ovi:oviste:v:xxi:y:2021:i:1:p:18-27
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    References listed on IDEAS

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    More about this item

    Keywords

    new companies formation; entrepreneurship; fixed effect model; dummy variables;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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