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Determinants of Entrepreneurship in French Regions: The Role of Spatial Heterogeneity

Author

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  • Marie-Estelle Binet

    (University of Rennes 1 - CREM UMR CNRS 6211, France)

  • François Facchini

    (University of Paris-Sud, Faculty Jean Monnet (France))

Abstract

This paper deals with the determinants of enterprise creation in the 22 French regions from 1994 to 2003. We then estimate a dynamic panel data model which allows spatial heterogeneity to be modelled and which is compared with a specification without spatial heterogeneity. The estimation results show that an appropriate consideration of spatial heterogeneity can lead to new insights. The results show: 1) that the Holcombe effect and the income effect have a statistically significant and positive impact for all regions; 2) that the age of the population and the size of the firms have the same negative effects for all regions with the exception of Ile-de-France; 3) that at the threshold of 10%, the refugee effect only concerns 10 regions out of 22; 4) that the effect of public R&D remains insignificant for 17 of the 22 regions, but becomes statistically significant in five regions and has a positive effect in three regions only, these being those which exhibit the highest per capita public R&D expenditure levels. Globally, Anselin's (1990) hypothesis, according to which the presence of spatial heterogeneity casts doubt upon the generalizability of theories in regional science, is thus in part confirmed.

Suggested Citation

  • Marie-Estelle Binet & François Facchini, 2013. "Determinants of Entrepreneurship in French Regions: The Role of Spatial Heterogeneity," Economics Working Paper Archive (University of Rennes & University of Caen) 201312, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    • Handle: RePEc:tut:cremwp:201312
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    References listed on IDEAS

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    1. Marie-Estelle Binet & François Facchini & Martin Koning, 2011. "Les déterminants de la dynamique entrepreneuriale dans les régions françaises," Post-Print halshs-00630442, HAL.
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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. 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.
    3. 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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    More about this item

    Keywords

    Creation of enterprises; spatial heterogeneity; dynamic panel data; refugee effect; public R&D;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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