The Impact of New Firm Formation on Regional Development in the Netherlands

André van Stel and Kashifa Suddle

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: This paper examines the relationship between new firm formation and regional employment change in the Netherlands. Using a new regional data base for the period 1988-2002, we examine the time lags involved in the relationship. We also investigate whether the relationship differs by time period, by sector and by degree of urbanization. We find that the maximum effect of new businesses on regional development is reached after about six years. Our results also suggest that the overall employment impact of new-firm startups is positive but that the immediate employment effects may be small in the Netherlands. Furthermore, we find that the relation between new businesses and regional development has been stable during the period under investigation, that the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is stronger in areas with a higher degree of urbanization.

Keywords: Entrepreneurship; Regional Development; Startups; the Netherlands (search for similar items in EconPapers)
JEL-codes: M M13 O14 O18 O32 (search for similar items in EconPapers)
Date: 2005-11-30
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: The impact of new firm formation on regional development in the Netherlands (2008)
Working Paper: The Impact of New Firm Formation on Regional Development in the Netherlands (2006)
Working Paper: The Impact of New Firm Formation on Regional Development in the Netherlands (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:ems:eureri:7131

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