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An Urban Approach to Firm Entry: The Effect of Urban Size
Author(s) -
ARAUZOCAROD JOSEPMARIA,
TERUELCARRIZOSA MERCEDES
Publication year - 2005
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.2005.00292.x
Subject(s) - economic geography , panel data , market size , business , barriers to entry , affect (linguistics) , industrial organization , economics , econometrics , market structure , commerce , sociology , communication
This article explores the determinants of firm entry in Spanish municipalities. The authors consider that size is an important determinant of a city's capacity to attract new manufacturing firms. Panel data were used to estimate the determinants of entry according to urban size in Spain (from 1994 to 1702). This article contributes to the literature on market entry because most previous contributions have focused on regional factors rather than urban ones. The results show that local characteristics affect the formation of new firms. However, more local data are needed to obtain more specific results.