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Local Multipliers in New Firm Creation: Inter-Sectoral Spillovers of Entrepreneurship and Startup Agglomeration

Jungho Kim

Global Economic Review, 2021, vol. 50, issue 3, 213-234

Abstract: This paper investigates the local multiplier effects in new firm creation by analysing a unique panel dataset of new firms and patents at the regional level in Australia. It finds that new firms in the tradable sector such as low-technology manufacturing and knowledge-intensive services industries have local multiplier effects on new firm creation in the non-tradable sector such as other services industries. It also shows that the local multiplier effect in new firm creation exists between manufacturing and knowledge-intensive services industries in the tradable sector. The local multipliers are greater in regions with more patents than in other regions.

Date: 2021
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DOI: 10.1080/1226508X.2021.1874465

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