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Regional variations in firm formation: Panel and cross-section data evidence from Finland

Author

Listed:
  • Aki Kangasharju

    (Pellervo Economic Research Institute, Eerikinkatu 28, 00180 Helsinki, Finland)

Abstract

This article investigates regional variations in firm formation in Finland between 1989 and 1993, and estimates the effects of regional factors on firm formation utilising panel and cross-sectional data. Panel data evidence shows that the average size of firms and establishments in the subregions tends to explain firm formation in Finland most robustly. Cross-sectional results for Finland and several other countries tend to show that demand growth is also an important factor explaining regional firm formation. Panel data results appear to differ from the cross-sectional ones.

Suggested Citation

  • Aki Kangasharju, 2000. "Regional variations in firm formation: Panel and cross-section data evidence from Finland," Papers in Regional Science, Springer;Regional Science Association International, vol. 79(4), pages 355-373.
    • Handle: RePEc:spr:presci:v:79:y:2000:i:4:p:355-373
    Note: Received: 18 December 1997
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    More about this item

    Keywords

    Firm formation; regions; panel data;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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