 NEW COMPANIES’ FORMATION IN ROMANIA. A PVAR MODEL APPROACHInternal Auditing and Risk Management, 2021, vol. 62, issue 2, 30-45 Abstract: This paper is an empirical analysis of determinants for new companies' formation and uses data from 42 Romanian counties (including Bucharest municipality) that belong to the 2010-2019 year interval. The exogenous here picked are found by the literature to be influential on new companies' formation. Results come out of a PVAR model applied (unrestricted vector autoregressive model applied on panel data). Granger causality results between regional GDP, unemployment rate, density of regional population, and entire entrepreneurial activity in Romania, on the one hand, and new companies' formation on the other, as endogenous. Stationarity and co-integration tests as well as lags criteria were done previously of estimating that PVAR model. All variables are found to be stationary of order one I(1), but test for co-integration was inconclusive. So, in absence of a certain co-integration, a VAR (and not a VECM) was chosen for estimations. Results confirm a relationship between almost all variables, tests for stability confirm that no root lies outside the unit circle and VAR satisfies the stability condition. Keywords: new companies' formation; entrepreneurship; VAR model; panel data (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ath:journl:v:62:y:2021:i:2:p:30-45 Access Statistics for this article Internal Auditing and Risk Management is currently edited by Emilia Vasile More articles in Internal Auditing and Risk Management from Athenaeum University of Bucharest Contact information at EDIRC. |
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