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The Employment Effects of New Business Formation: A Regional Perspective

Author

Listed:
  • Huaqun Li

    (George Mason University, Fairfax, VA, USA)

  • Shaoming Cheng

    (Florida International University, Miami, FL, USA)

  • Kingsley E. Haynes

    (George Mason University, Fairfax, VA, USA, khaynes@gmu.edu)

Abstract

This article seeks to examine spatially varying relationships between new firm formation and employment growth across U.S. counties. The existing empirical evidence does not provide consistent conclusions of the effect of new business formation on employment growth. The regional effects of new firm formation on employment growth are examined and emphasized in this article. It is hypothesized and tested that there are different relationships between new firm formation and employment growth across metropolitan and nonmetropolitan counties. Geographically weighted regression model is calibrated with county-level data to identify the spatially varying relationships across metropolitan and nonmetropolitan counties.

Suggested Citation

  • Huaqun Li & Shaoming Cheng & Kingsley E. Haynes, 2011. "The Employment Effects of New Business Formation: A Regional Perspective," Economic Development Quarterly, , vol. 25(3), pages 282-292, August.
    • Handle: RePEc:sae:ecdequ:v:25:y:2011:i:3:p:282-292
    DOI: 10.1177/0891242411407310
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    References listed on IDEAS

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    Cited by:

    1. Heike Delfmann & Sierdjan Koster, 2016. "The effect of new business creation on employment growth in regions facing population decline," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 33-54, January.
    2. Ferhan Gezici & Burçin Yazgı Walsh & Sinem Metin Kacar, 2017. "Regional and structural analysis of the manufacturing industry in Turkey," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 209-230, July.
    3. Heike Delfmann & Sierdjan Koster, 2014. "New firm formation and its effect on employment growth in declining regions," ERSA conference papers ersa14p1133, European Regional Science Association.
    4. Heike Delfmann & Sierdjan Koster, 2016. "The effect of new business creation on employment growth in regions facing population decline," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 33-54, January.

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