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The effect of new business formation on regional development over time: the case of Germany |
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| Authors: | |||
| Institution: | (1) Faculty of Economics and Business Administration, Friedrich-Schiller-University Jena, Carl-Zeiss-Str. 3, 07743 Jena, Germany;(2) German Institute of Economic Research (DIW-Berlin), Berlin, Germany;(3) Max Planck Institute of Economics, Kahlaische Str. 10, 07745 Jena, Germany | ||
| Abstract: | We investigate the effects of new business formation on employment change in German regions. A special focus is on the lag-structure
of this effect and on differences between regions. The different phases of the effects of new business formation on regional
development are relatively pronounced in agglomerations as well as in regions with a high-level of labor productivity. In
low-productivity regions, the overall employment effect of new business formation activity might be negative. The interregional
differences indicate that regional factors play an important role.
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| Keywords: | Entrepreneurship New business formation Regional development Germany | ||
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