The role of distance and social networks in the geography of crowdfunding: evidence from France
Sylvain Dejean ()
Regional Studies, 2020, vol. 54, issue 3, 329-339
This paper estimates the cost of distance in the geographical flow of crowdfunding, and shows how social ties between the 94 French metropolitan regions shape the geography of funding. This analysis draws upon a unique database provided by the French leader in rewards-based crowdfunding. The main result is that the elasticity of distance remains important (around 0.5), and that social ties between regions determine the flow of funding. Doubling the number of immigrants in a region increases the number of investments by 24% and reduces the impact of distance.
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Working Paper: The role of distance and social networks in the geography of crowdfunding: evidence from France (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:taf:regstd:v:54:y:2020:i:3:p:329-339
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