The Impact of New Firm Formation on Regional Development in the Netherlands

André van Stel and Kashifa Suddle

No H200503, Scales Research Reports from EIM Business and Policy Research

Abstract: This paper examines the relationship between new firm formation and regional employment change in the Netherlands. Using a new regional data base for the period 1988-2002, we examine the time lags involved in the relationship. We also investigate whether the relationship differs by time period, by sector and by degree of urbanization. We find that the maximum effect of new businesses on regional development is reached after about six years. Our results also suggest that the overall employment impact of new-firm startups is positive but that the immediate employment effects may be small in the Netherlands. Furthermore, we find that the relation between new businesses and regional development has been stable during the period under investigation, that the employment impact of new firms is strongest in manufacturing industries and that the employment impact of new firms is stronger in areas with a higher degree of urbanization.

Pages: 25 pages
Date: 2005-12-06
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Citations: View citations in EconPapers (15)

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http://www.entrepreneurship-sme.eu/pdf-ez/H200503.pdf (application/pdf)

Related works:
Journal Article: The impact of new firm formation on regional development in the Netherlands (2008)
Working Paper: The Impact of New Firm Formation on Regional Development in the Netherlands (2006)
Working Paper: The Impact of New Firm Formation on Regional Development in the Netherlands (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:eim:papers:h200503

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