Regional variations in firm formation: Panel and cross-section data evidence from Finland

Aki Kangasharju ()

Papers in Regional Science, 2000, vol. 79, issue 4, 355-373

Abstract: This article investigates regional variations in firm formation in Finland between 1989 and 1993, and estimates the effects of regional factors on firm formation utilising panel and cross-sectional data. Panel data evidence shows that the average size of firms and establishments in the subregions tends to explain firm formation in Finland most robustly. Cross-sectional results for Finland and several other countries tend to show that demand growth is also an important factor explaining regional firm formation. Panel data results appear to differ from the cross-sectional ones.

Keywords: Firm formation; regions; panel data (search for similar items in EconPapers)
JEL-codes: C33 R12 (search for similar items in EconPapers)
Date: 2000-10-11
Note: Received: 18 December 1997
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Citations: View citations in EconPapers (47)

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