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New Firm Formation — is VAT Registration Data an Accurate Indicator?

John Ball
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John Ball: Swansea Business School, University of Wales, UK

Local Economy, 2007, vol. 22, issue 3, 279-292

Abstract: This paper utilises a novel and original data set collected from a survey of entirely new firms in south Wales. It compares this survey with published VAT data to address the extent to which published VAT registration actually reflects the amount of new firm formation taking place. Using this survey and a chi square test, this article offers evidence of the deficiencies of published VAT data when used as a proxy for new firm formation and suggests caution in the use of VAT data.

Date: 2007
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Persistent link: https://EconPapers.repec.org/RePEc:sae:loceco:v:22:y:2007:i:3:p:279-292

DOI: 10.1080/02690940701584698

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