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Regional variations in firm formation: Panel and cross‐section data evidence from Finland *
Author(s) -
Kangasharju Aki
Publication year - 2000
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.2000.tb01762.x
Subject(s) - section (typography) , panel data , regional science , economics , geography , econometrics , business , advertising
. 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.