2004
DOI: 10.1007/s00168-004-0194-9
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New firm formation: Dynamics and determinants

Abstract: Empirical studies of determinants of new firm formation to date have tended to yield diverse and even contradictory results. Three primary reasons for this have been advanced: (1) the paucity of suitable micro-level data (2) the failure to control for amorphous time- and place-specific influences that defy specification, and (3) the use of estimation techniques that do not handle adequately the effects of heteroscedasticity. This paper addresses all of these shortcomings by employing a unique data set composed… Show more

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Cited by 146 publications
(101 citation statements)
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“…Therefore, we can confirm that the companies concentration influence positively on the financial sustainability, through the taxes collected [44].…”
Section: Rq 2 -Does the Company's Concentration Affect The Financial mentioning
confidence: 56%
See 1 more Smart Citation
“…Therefore, we can confirm that the companies concentration influence positively on the financial sustainability, through the taxes collected [44].…”
Section: Rq 2 -Does the Company's Concentration Affect The Financial mentioning
confidence: 56%
“…In this sense, following Sutaria and Hicks [44] implies an increase in tax revenues and private consumption, promoting financial capability the governments. However, authors such as Fritsch and Mueller [45] show that the companies' concentration in a region can have both positive and negative consequences on their development.…”
Section: Research Questionsmentioning
confidence: 99%
“…Surprisingly, mean establishment size (LogEstSize) measuring the structure of the industry has a significant positive impact with a coefficient around 0.19. Sutaria and Hicks (2004) offer two potential explanation for the results. First, large firms trigger the development of new interim goods suppliers of that industry.…”
Section: Findings and Discussionmentioning
confidence: 88%
“…Key explanatory variables include measures of unemployment, population density, industrial restructuring, and availability of financing (Armington and Acs, 2002), income as well as market dynamics such as exits and change in industrial structure (Sutaria and Hicks, 2004). Infrastructure, such as motorways, may also affect firm entry and location (Holl, 2004).…”
Section: Example II Entrepreneurship and Knowledge Spilloversmentioning
confidence: 99%