REGIONAL AND SECTORAL LOCATION PATTERNS OF NEW FIRMS: THE CASE OF GREECE

Irene Daskalopoulou and Panagiotis Liargovas

Regional and Sectoral Economic Studies, 2008, vol. 8, issue 2, 99-110

Abstract: This paper analyses the relationship between entrepreneurship and the external environment of firms. Entrepreneurship is approximated by start-ups in four industries, namely manufacturing, commerce, services and tourism. Agglomeration economies and state incentives to promote entrepreneurship at certain locations are the main environmental factors analysed here. Results support the argument that localization and urbanization economies affect different sectors in different ways. In such a context, the observed positive effect of state incentives upon entrepreneurship at certain locations might be counterbalanced by the presence of negative localization effects as suggested by the present findings regarding manufacturing start-ups.

Keywords: regional location; new firms; Greece (search for similar items in EconPapers)
JEL-codes: R10 R30 (search for similar items in EconPapers)
Date: 2008
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