Typology of the French regional development: revealing the refugee/Schumpeter effects in new-firms startups (original) (raw)

Entrepreneurship and the Business Cycle: the “Schumpeter” effect versus the “refugee” effect - A French appraisal based on regional data

Mathilde Aubry, Jean Bonnet, Patricia Renou-Maissant, 2014

"We study the influences of new-firm startups on growth at the regional and macroeconomic level in France using a quarterly data base over the 1993-2011 period. We find that fluctuations in GDP are an early indicator of new-firm startups. Nevertheless, the most important relationships are found between the unemployment rate and new-firm startups. Entrepreneurship is mainly driven by an unemployment “push” effect that have consequences upon the potential of growth of new-firm startups in most of the French regions. The Île-de France region is an exception since the “Schumpeter” effect prevails in the long term. "

Typology of the French regional development: revealing therefugeeversusSchumpetereffects in new-firm start-ups

Applied Economics, 2014

The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden.

1. The Impact of Unemployment on Entrepreneurship: Empirical Evidence from France

2007

In contrast to the widespread assumption in the field of entrepreneurship that "entrepreneurs are born", the reality we experience is that environmental circumstances play a high role in explaining different levels of entrepreneurship across regions or countries. This article gives strong support for unemployment as key factor for entrepreneurship. An empirical lead forward was made by including data of all new firms created between 1993 and 2001 in 348 French labor market areas (2.8 million firms) into a multiple regression analysis. Our empirical study presents evidences about the effects of the local socioeconomic environment on entrepreneurship. The results clearly show that geography matters for entrepreneurship. Three major determinants of entrepreneurship have been identified: 1) a high unemployment rate, 2) population growth, and 3) a highly qualified working population. Additionally, unemployment has been shown to affect entrepreneurship activity even more than population growth, i.e. increasing market demand.

The factors determining firm start-ups in French regions and the heterogeneity of regional labor markets

The Annals of Regional Science, 2014

This paper investigates the determinants of business start-ups in the 22 French regions, considering four different sectors (industry, real estate, trade and services) over 1995-2004. The main innovation of the paper was to analyze regional differences in the decision to start a new business on a sector basis. Using spatial statistics and dynamic panel data methods, we estimate spatial regimes models. First, we show that regional factors determining new firm start-ups differ between sectors. Second, the estimation results are consistent with the existence of spatial heterogeneity. Finally, we observe persistence in start-up rates. JEL Classification J21 • M13 • O18 M.-E. Binet (B) CREM,

THE IMPACT OF UNEMPLOYMENT ON ENTREPRENEURSHIP: EMPIRICAL EVIDENCE FROM FRANCE

In contrast to the widespread assumption in the field of entrepreneurship that "entrepreneurs are born", the reality we experience is that environmental circumstances play a high role in explaining different levels of entrepreneurship across regions or countries. This article gives strong support for unemployment as key factor for entrepreneurship. An empirical lead forward was made by including data of all new firms created between 1993 and 2001 in 348 French labor market areas (2.8 million firms) into a multiple regression analysis. Our empirical study presents evidences about the effects of the local socio-economic environment on entrepreneurship. The results clearly show that geography matters for entrepreneurship. Three major determinants of entrepreneurship have been identified: 1) a high unemployment rate, 2) population growth, and 3) a highly qualified working population. Additionally, unemployment has been shown to affect entrepreneurship activity even more than population growth, i.e. increasing market demand.

Typology of the French regional development: revealing therefugeeversusSchumpetereffects in new-firm start-ups

Applied Economics, 2014

The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden.

The dynamics of local employment in France

Journal of Urban Economics, 2004

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Firm start-up strategies and performance in France: Survival and growth

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Essential performance outcomes of the new firm, including survival and growth, are related to financial and operational factors of the firm. We present a model that shows that firm financing via debt has some influence on types of market outreach, survival, and also growth of new firms in France. Using a robust, longitudinal dataset of the population of firms throughout the country established, continuing, and closing over the period of 2002 to 2007 (available through the French government via the SINE Survey: Système d'informations sur les nouvelles entreprises), we show that for a given indebtedness of the new firm, the entrepreneurial behavior generally improves the survival and the growth of new ventures. 6 case the firm remains solvent. The probability of exit of the firm, i ( i

Employment and Regional Development in France

… and International Development, Vol. 1, No …, 2008

We present an econometric analysis, with a cross section sample of 22 French regions, that shows the significant impact of several factors on regional development. The main factors here considered are industry, tourism and public sector activities. The article also analyses the evolution of employment rates in France, in comparison with European Union and USA, as well as the regional distribution of the economic activities that favour employment and economic development. The period of analysis is 1960-2000 for national data and 1985-98 for regional data. JEL cla ssification: E24, J2, 018, 052, R23 1.-Employment and population in French regions The regional distribution of population and some economic activities like building and commercial services depend on the regional distribution of employment in industry, public sector, tourism and other variables that influence regional development. Several interregional econometric models have shown that important increases in real value-added of a region usually provoke an increase in employment and population, favouring a sustained rate of development. Increases in value-added come usually from non agrarian activities, like industry, public sector activities and tourism, as real value-added in agriculture usually has a lower capability of growth.