IDEAS home Printed from https://ideas.repec.org/a/spr/jahrfr/v32y2012i2p113-132.html
   My bibliography  Save this article

Identifying spatial nonstationarity in German regional firm start-up data

Author

Listed:
  • Sven Müller

Abstract

Background: We investigate the relationship between the rate at which new firms are established and regional characteristics and whether this relationship is constant over space or not. The characteristics reflect (i) agglomerations that in turn are related to increasing returns to production and (ii) measures which are influenceable immediately by regional decision makers. Method: In order to account for spatial nonstationarity, we use the geographically weighted regression method for German start-up data on the geographical scale NUTS3. Moreover, we discuss significance test for locally varying regression coefficients. Results: We are able to verify the global positive relationship between production convexities—measured by population density and growth amongst others—and the start-up rate on a regional level (Kreise). Furthermore, we find the share of industrial real estate to have positive influence on the regional start-up rate. Finally, we find strong empirically evidence that there is spatial nonstationarity in the data and hence the assumed relationship varies locally. Conclusion: The results give evidence that spatial nonstationarity could not be neglected in the analysis of start-up rates. However, we suggest to develop global models that account—at least partially—for the underlying spatial nonstationarity by exogenous variables. Copyright Springer-Verlag 2012

Suggested Citation

  • 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.
    • Handle: RePEc:spr:jahrfr:v:32:y:2012:i:2:p:113-132
    DOI: 10.1007/s10037-012-0064-3
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10037-012-0064-3
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10037-012-0064-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sam Youl Lee & Richard Florida & Zoltan J. Acs, 2008. "Creativity and Entrepreneurship: A Regional Analysis of New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 13, pages 171-182, Edward Elgar Publishing.
    2. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    3. Antonio Páez & Takashi Uchida & Kazuaki Miyamoto, 2002. "A General Framework for Estimation and Inference of Geographically Weighted Regression Models: 2. Spatial Association and Model Specification Tests," Environment and Planning A, , vol. 34(5), pages 883-904, May.
    4. C Brunsdon & A S Fotheringham & M Charlton, 1998. "Spatial Nonstationarity and Autoregressive Models," Environment and Planning A, , vol. 30(6), pages 957-973, June.
    5. Vincent Calay & Jean-Luc Guyot & Gilles Van Hamme, 2007. "Are human capital and culture the key factors in explaining intra-regional differences? Novice entrepreneurship and geocultural context in the Walloon Region," ULB Institutional Repository 2013/48499, ULB -- Universite Libre de Bruxelles.
    6. Josef Brüderl & Talat Mahmood, 1996. "Small Business Mortality in Germany: A Comparison Between Regions and Sectors," CIG Working Papers FS IV 96-20, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
    7. Stuart A. Foster & Wilpen L. Gorr, 1986. "An Adaptive Filter for Estimating Spatially-Varying Parameters: Application to Modeling Police Hours Spent in Response to Calls for Service," Management Science, INFORMS, vol. 32(7), pages 878-889, July.
    8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-499, June.
    9. Dominique Meurs & Cyriaque Edon, 2007. "France: A Limited Effect Of Regions On Public Wage Differentials?," Manchester School, University of Manchester, vol. 75(4), pages 479-500, July.
    10. Kam, Suan-Pheng & Hossain, Mahabub & Bose, Manik Lal & Villano, Lorena S., 2005. "Spatial patterns of rural poverty and their relationship with welfare-influencing factors in Bangladesh," Food Policy, Elsevier, vol. 30(5-6), pages 551-567.
    11. David B. Audretsch & Dirk Dohse, 2007. "Location: A Neglected Determinant of Firm Growth," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 143(1), pages 79-107, April.
    12. David Wheeler & Michael Tiefelsdorf, 2005. "Multicollinearity and correlation among local regression coefficients in geographically weighted regression," Journal of Geographical Systems, Springer, vol. 7(2), pages 161-187, June.
    13. Dan-Lin Yu, 2006. "Spatially varying development mechanisms in the Greater Beijing Area: a geographically weighted regression investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 40(1), pages 173-190, March.
    14. Peter Nijkamp & Ronald L. Moomaw & Iulia Traistaru-Siedschlag (ed.), 2006. "Entrepreneurship, Investment and Spatial Dynamics," Books, Edward Elgar Publishing, number 3889.
    15. Yefang Huang & Yee Leung, 2002. "Analysing regional industrialisation in Jiangsu province using geographically weighted regression," Journal of Geographical Systems, Springer, vol. 4(2), pages 233-249, June.
    16. Christopher Bitter & Gordon Mulligan & Sandy Dall’erba, 2007. "Incorporating spatial variation in housing attribute prices: a comparison of geographically weighted regression and the spatial expansion method," Journal of Geographical Systems, Springer, vol. 9(1), pages 7-27, April.
    17. David Audretsch & Michael Fritsch, 1999. "The Industry Component of Regional New Firm Formation Processes," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 15(3), pages 239-252, November.
    18. Partridge, Mark D. & Rickman, Dan S., 2007. "Persistent Pockets of Extreme American Poverty and Job Growth: Is There a Place-Based Policy Role?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(1), pages 1-24, April.
    19. Gino Cattani & Johannes M. Pennings & Filippo Carlo Wezel, 2003. "Spatial and Temporal Heterogeneity in Founding Patterns," Organization Science, INFORMS, vol. 14(6), pages 670-685, December.
    20. 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.
    21. Yee Leung & Chang-Lin Mei & Wen-Xiu Zhang, 2000. "Statistical Tests for Spatial Nonstationarity Based on the Geographically Weighted Regression Model," Environment and Planning A, , vol. 32(1), pages 9-32, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Katharina Pijnenburg, 2013. "Self-Employment and Economic Performance: A Geographically Weighted Regression Approach for European Regions," Discussion Papers of DIW Berlin 1272, DIW Berlin, German Institute for Economic Research.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shaoming Cheng & Huaqun Li, 2011. "Spatially Varying Relationships of New Firm Formation in the United States," Regional Studies, Taylor & Francis Journals, vol. 45(6), pages 773-789.
    2. Shaoming Cheng & Huaqun Li, 2010. "The effects of unemployment on new firm formation revisited: Does space matter?," Regional Science Policy & Practice, Wiley Blackwell, vol. 2(2), pages 97-120, November.
    3. Marcus Dejardin, 2010. "La création d'entreprises et ses rapports au territoire," Post-Print halshs-00618267, HAL.
    4. 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.
    5. Stephen Matthews & Tse-Chuan Yang, 2012. "Mapping the results of local statistics," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 26(6), pages 151-166.
    6. Dirk Dohse & Sascha Walter, 2012. "Knowledge context and entrepreneurial intentions among students," Small Business Economics, Springer, vol. 39(4), pages 877-895, November.
    7. Cho, Seong-Hoon & Lambert, Dayton M. & Kim, Seung Gyu & Jung, Suhyun, 2009. "Extreme coefficients in Geographically Weighted Regression and their effects on mapping," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49117, Agricultural and Applied Economics Association.
    8. 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.
    9. Marco Helbich & Wolfgang Brunauer & Eric Vaz & Peter Nijkamp, 2014. "Spatial Heterogeneity in Hedonic House Price Models: The Case of Austria," Urban Studies, Urban Studies Journal Limited, vol. 51(2), pages 390-411, February.
    10. Niklas Elert, 2014. "What determines entry? Evidence from Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 55-92, August.
    11. Paul A. Coomes & Jose Fernandez & Stephan F. Gohmann, 2013. "The Rate of Proprietorship Among Metropolitan Areas: The Impact of the Local Economic Environment and Capital Resources," Entrepreneurship Theory and Practice, , vol. 37(4), pages 745-770, July.
    12. Pradhan, Jaya Prakash & Husain, Tareef, 2021. "Drivers of SME Formation in Indian States: The Empirics," MPRA Paper 25061, University Library of Munich, Germany.
    13. Löchl, Michael & Axhausen, Kay W., 2010. "Modelling hedonic residential rents for land use and transport simulation while considering spatial effects," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 3(2), pages 39-63.
    14. Gollini, Isabella & Lu, Binbin & Charlton, Martin & Brunsdon, Christopher & Harris, Paul, 2015. "GWmodel: An R Package for Exploring Spatial Heterogeneity Using Geographically Weighted Models," Journal of Statistical Software, Foundation for Open Access Statistics, vol. 63(i17).
    15. 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.
    16. Wei, Chuan-Hua & Qi, Fei, 2012. "On the estimation and testing of mixed geographically weighted regression models," Economic Modelling, Elsevier, vol. 29(6), pages 2615-2620.
    17. Kamar Ali & Mark D. Partridge & M. Rose Olfert, 2007. "Can Geographically Weighted Regressions Improve Regional Analysis and Policy Making?," International Regional Science Review, , vol. 30(3), pages 300-329, July.
    18. Ning Wang & Chang-Lin Mei & Xiao-Dong Yan, 2008. "Local Linear Estimation of Spatially Varying Coefficient Models: An Improvement on the Geographically Weighted Regression Technique," Environment and Planning A, , vol. 40(4), pages 986-1005, April.
    19. Henry Renski, 2014. "The Influence of Industry Mix on Regional New Firm Formation in the United States," Regional Studies, Taylor & Francis Journals, vol. 48(8), pages 1353-1370, August.
    20. Li, Deng-Kui & Mei, Chang-Lin & Wang, Ning, 2019. "Tests for spatial dependence and heterogeneity in spatially autoregressive varying coefficient models with application to Boston house price analysis," Regional Science and Urban Economics, Elsevier, vol. 79(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jahrfr:v:32:y:2012:i:2:p:113-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.