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Institutions and Firm Formation: an Empirical Analysis of Portuguese Municipalities

Author

Listed:
  • Simão Arouca

    (Nova School of Business and Economics. Office for Strategy and Studies (GEE), Portuguese Ministry of Economy and Employment.)

Abstract

The uneven spatial distribution of start-ups observed for Portugal from 2003 to 2009 suggests that local attributes, among which the quality of municipal institutions and their respective governance, impact the entrepreneurial process. Through the usage of a fixed effects negative binomial model, this thesis examines the role of municipalities in stimulating firm births, finding both the development of business-related infrastructures and the signals stemming from sound financial management to be the most relevant determinants. While some significance, although conditional, can be assigned to fast-paced licensing and EU structural funding, political right-left preferences appear to exert a negligible influence.

Suggested Citation

  • Simão Arouca, 2013. "Institutions and Firm Formation: an Empirical Analysis of Portuguese Municipalities," GEE Papers 0050, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Oct 2013.
    • Handle: RePEc:mde:wpaper:0050
    as

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    File URL: https://www.gee.gov.pt/RePEc/WorkingPapers/GEE_PAPERS_50.pdf
    File Function: First version, 2013
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Firm Formation; Municipalities; Institutions.;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis

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