IDEAS home Printed from https://ideas.repec.org/p/cat/dtecon/dt201508.html
   My bibliography  Save this paper

Spatio-temporal persistence of municipal rates of business start-ups in Chile

Author

Listed:
  • Mauricio Oyarzo

    (Departamento de Economía, Universidad Católica del Norte, Chile)

  • Gianni Romani

    (Departamento de Administración, Universidad Católica del Norte, Chile)

  • Miguel Atienza

    (Departamento de Economía, Universidad Católica del Norte, Chile)

  • Marcelo Lufin

    (Departamento de Economía, Universidad Católica del Norte, Chile)

Abstract

This work investigates the spatio-temporal persistence of municipal rates of business start-ups in Chile between 2005 and 2011, using the database of the Internal Revenue Service (SII). The analysis was made with descriptive statistical, non-parametric tests and econometric models. The results show persistent spatio-temporal clusters, representing favorable and unfavorable environments for entrepreneurship, as well as a high probability of any municipality remaining in the same cluster. The factors that explain persistence reveal distinct effects on start-up creation for each level of municipal entrepreneurship, which suggests the need for policies that take into account the spatial differences in entrepreneurial dynamism.

Suggested Citation

  • Mauricio Oyarzo & Gianni Romani & Miguel Atienza & Marcelo Lufin, 2015. "Spatio-temporal persistence of municipal rates of business start-ups in Chile," Documentos de Trabajo en Economia y Ciencia Regional 61, Universidad Catolica del Norte, Chile, Department of Economics, revised Jul 2015.
    • Handle: RePEc:cat:dtecon:dt201508
    as

    Download full text from publisher

    File URL: https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2015-08.pdf
    File Function: First version, 2015
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Josep‐Maria Arauzo‐Carod & Mercedes Teruel‐Carrizosa, 2005. "An Urban Approach to Firm Entry: The Effect of Urban Size," Growth and Change, Wiley Blackwell, vol. 36(4), pages 508-528, September.
    2. Glaeser, Edward L. & Scheinkman, JoseA. & Shleifer, Andrei, 1995. "Economic growth in a cross-section of cities," Journal of Monetary Economics, Elsevier, vol. 36(1), pages 117-143, August.
    3. Greene,William H. & Hensher,David A., 2010. "Modeling Ordered Choices," Cambridge Books, Cambridge University Press, number 9780521194204, November.
    4. Félix Modrego & Philip McCann & William Foster & M. Olfert, 2015. "Regional entrepreneurship and innovation in Chile: a knowledge matching approach," Small Business Economics, Springer, vol. 44(3), pages 685-703, March.
    5. 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.
    6. Mercedes Delgado & Michael E. Porter & Scott Stern, 2010. "Clusters and entrepreneurship," Journal of Economic Geography, Oxford University Press, vol. 10(4), pages 495-518, July.
    7. Peter Johnson & Simon Parker, 1996. "Spatial Variations in the Determinants and Effects of Firm Births and Deaths," Regional Studies, Taylor & Francis Journals, vol. 30(7), pages 679-688.
    8. Audretsch, David B. & Fritsch, Michael, 1993. "A Note on the Measurement of Entry Rates," Freiberg Working Papers 1993/05, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
    9. Michael Wyrwich, 2014. "Ready, set, go! Why are some regions entrepreneurial jump starters?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 487-513, September.
    10. Glauben, Thomas & Herzfeld, Thomas & Wang, Xiaobing, 2006. "The Persistence of Poverty in Rural China: Applying an Ordered Probit and a Hazard Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25249, International Association of Agricultural Economists.
    11. David B. Audretsch & Max Keilbach, 2006. "Entrepreneurship, Growth and Restructuring," Papers on Entrepreneurship, Growth and Public Policy 2006-13, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    12. David F. Batten & Charlie Karlsson (ed.), 1996. "Infrastructure and the Complexity of Economic Development," Advances in Spatial Science, Springer, number 978-3-642-80266-9, december.
    13. Michael Fritsch & Michael Wyrwich, 2012. "The Long Persistence of Regional Entrepreneurship Culture: Germany 1925 - 2005," Discussion Papers of DIW Berlin 1224, DIW Berlin, German Institute for Economic Research.
    14. Zoltán J. Ács & Pamela Mueller, 2015. "Employment effects of business dynamics: Mice, Gazelles and Elephants," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 16, pages 304-319, Edward Elgar Publishing.
    15. Ron Martin, 2010. "Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock‐in to Evolution," Economic Geography, Clark University, vol. 86(1), pages 1-27, January.
    16. Eleonora Bartoloni & Maurizio Baussola, 2009. "The Persistence of Profits, Sectoral Heterogeneity and Firms' Characteristics," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 16(1), pages 87-111.
    17. Michael Fritsch & Pamela Mueller, 2007. "The persistence of regional new business formation-activity over time – assessing the potential of policy promotion programs," Journal of Evolutionary Economics, Springer, vol. 17(3), pages 299-315, June.
    18. Paul Bishop, 2012. "Knowledge, diversity and entrepreneurship: a spatial analysis of new firm formation in Great Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 24(7-8), pages 641-660, September.
    19. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355, March.
    20. André Stel & Kashifa Suddle, 2008. "The impact of new firm formation on regional development in the Netherlands," Small Business Economics, Springer, vol. 30(1), pages 31-47, January.
    21. Miguel Atienza & Marcelo Lufín & Gianni Romani, 2014. "La aparente revolución del emprendimiento en Chile. Una perspectiva espacial," Documentos de Trabajo en Economia y Ciencia Regional 51, Universidad Catolica del Norte, Chile, Department of Economics, revised Mar 2014.
    22. José Amorós & Christian Felzensztein & Eli Gimmon, 2013. "Entrepreneurial opportunities in peripheral versus core regions in Chile," Small Business Economics, Springer, vol. 40(1), pages 119-139, January.
    23. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    24. Heike Delfmann & Sierdjan Koster & Philip McCann & Jouke Van Dijk, 2014. "Population Change and New Firm Formation in Urban and Rural Regions," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 1034-1050, June.
    25. Norin Arshed & Sara Carter & Colin Mason, 2014. "The ineffectiveness of entrepreneurship policy: is policy formulation to blame?," Small Business Economics, Springer, vol. 43(3), pages 639-659, October.
    26. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    27. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    28. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    29. Martin Andersson & Sierdjan Koster, 2011. "Sources of persistence in regional start-up rates--evidence from Sweden," Journal of Economic Geography, Oxford University Press, vol. 11(1), pages 179-201, January.
    30. Catherine Armington & Zoltan J. Acs, 2008. "The Determinants of Regional Variation in New Firm Formation," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 18, pages 224-243, Edward Elgar Publishing.
    31. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521899604, March.
    32. F�lix Modrego & Philip McCann & William E. Foster & M. Rose Olfert, 2014. "Regional Market Potential and the Number and Size of Firms: Observations and Evidence from Chile," Spatial Economic Analysis, Taylor & Francis Journals, vol. 9(3), pages 327-348, September.
    33. Pamela Mueller & André Stel & David Storey, 2008. "The effects of new firm formation on regional development over time: The case of Great Britain," Small Business Economics, Springer, vol. 30(1), pages 59-71, January.
    34. Hans Westlund & Johan P. Larsson & Amy Rader Olsson, 2014. "Start-ups and Local Entrepreneurial Social Capital in the Municipalities of Sweden," Regional Studies, Taylor & Francis Journals, vol. 48(6), pages 974-994, June.
    35. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
    36. Setterfield, Mark, 1997. "'History versus Equilibrium' and the Theory of Economic Growth," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(3), pages 365-378, May.
    Full references (including those not matched with items on IDEAS)

    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. Michael Wyrwich, 2014. "Ready, set, go! Why are some regions entrepreneurial jump starters?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(2), pages 487-513, September.
    2. 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.
    3. Backman, Mikaela & Karlsson, Charlie, 2013. "Who says life is over after 55? Entrepreneurship and an aging population," Working Paper Series in Economics and Institutions of Innovation 325, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Mikaela Backman, 2013. "Who says life is over after 55? - New firm formation and an ageing population," ERSA conference papers ersa13p58, European Regional Science Association.
    5. Obschonka, Martin & Stuetzer, Michael & Gosling, Samuel D. & Rentfrow, Peter J. & Lamb, Michael E. & Potter, Jeff & Audretsch, David B., 2015. "Entrepreneurial Regions: Do Macro-psychological Cultural Characteristics of Regions help solve the “Knowledge Paradox” of Economics?," MPRA Paper 65323, University Library of Munich, Germany.
    6. Stuetzer, Michael & Obschonka, Martin & Audretsch, David B. & Wyrwich, Michael & Rentfrow, Peter J. & Coombes, Mike & Shaw-Taylor, Leigh & Satchell, Max, 2016. "Industry structure, entrepreneurship, and culture: An empirical analysis using historical coalfields," European Economic Review, Elsevier, vol. 86(C), pages 52-72.
    7. 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.
    8. Georgios Fotopoulos & David J Storey, 2017. "Persistence and change in interregional differences in entrepreneurship: England and Wales, 1921–2011," Environment and Planning A, , vol. 49(3), pages 670-702, March.
    9. Michael Stuetzer & Martin Obschonka & Udo Brixy & Rolf Sternberg & Uwe Cantner, 2014. "Regional characteristics, opportunity perception and entrepreneurial activities," Small Business Economics, Springer, vol. 42(2), pages 221-244, February.
    10. 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.
    11. Martin Obschonka & Michael Stuetzer & Samuel D Gosling & Peter J Rentfrow & Michael E Lamb & Jeff Potter & David B Audretsch, 2015. "Entrepreneurial Regions: Do Macro-Psychological Cultural Characteristics of Regions Help Solve the “Knowledge Paradox” of Economics?," PLOS ONE, Public Library of Science, vol. 10(6), pages 1-21, June.
    12. Michael Fritsch & Michael Wyrwich, 2012. "The Long Persistence of Regional Entrepreneurship Culture: Germany 1925-2005," Jena Economics Research Papers 2012-036, Friedrich-Schiller-University Jena.
    13. Michael Fritsch & Michael Wyrwich, 2023. "Entrepreneurship in the Long-Run: Empirical Evidence and Historical Mechanisms," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 19(1), pages 1-125, January.
    14. Lianne Hans & Sierdjan Koster, 2018. "Urbanization and start-up rates in different geographies: Belgium, the Netherlands, and Sweden," Small Business Economics, Springer, vol. 51(4), pages 1033-1054, December.
    15. Cristian Gherhes & Tim Vorley & Nick Williams, 2018. "Entrepreneurship and local economic resilience: the impact of institutional hysteresis in peripheral places," Small Business Economics, Springer, vol. 51(3), pages 577-590, October.
    16. Kuechle, Graciela, 2014. "Regional concentration of entrepreneurial activities," Journal of Economic Behavior & Organization, Elsevier, vol. 102(C), pages 59-73.
    17. Eunsuk Hong & In Lee & Laixiang Sun & Richard Harrison, 2015. "Entrepreneurship across time and space: empirical evidence from Korea," Small Business Economics, Springer, vol. 44(3), pages 705-719, March.
    18. Kim, Jungho & Kollmann, Trevor & Palangkaraya, Alfons & Webster, Elizabeth, 2022. "Does local technological specialisation, diversity and dynamic competition enhance firm creation?," Research Policy, Elsevier, vol. 51(7).
    19. Ismaëlh Cissé & Jean Dubé & Cédric Brunelle, 2020. "New business location: how local characteristics influence individual location decision?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 185-214, February.
    20. Backman, Mikaela & Kohlhase, Janet, 2013. "The Influence of Diversity on the Formation, Survival and Growth of New Firms," Working Paper Series in Economics and Institutions of Innovation 337, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

    More about this item

    Keywords

    Entrepreneurship; regional development; spatio-temporal persistence; spatial clusters;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:cat:dtecon:dt201508. 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: Benjamin Jara The email address of this maintainer does not seem to be valid anymore. Please ask Benjamin Jara to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/ieucncl.html .

    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.