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GEOGRAPHICAL DETERMINANTS OF THE CREATION OF MANUFACTURING FIRMS: THE REGIONS OF SPAIN

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Disciplines
  • Economics

Abstract

Microsoft Word - 300.RTF 1 40th European Regional Science Association Congress Barcelone. 29th August-1st September 2000 GEOGRAPHICAL DETERMINANTS OF THE CREATION OF MANUFACTURING FIRMS: THE REGIONS OF SPAIN (♣) Agustí Segarra Blasco. University Rovira i Virgili (*) (Spain) Maria Callejón Fornielles.University of Barcelona (**) (Spain) ABSTRACT: The complexity of the mechanisms determining the entry and exit of firms increases when geographical differences in production structure, market structure, levels of skill and training of workers, and the presence of active local policies for promoting industry are considered. Inter-territorial disparities in the rate of the new firm start-ups within each industrial activity endure through long periods of time, a circumstance that indicates that there are non- conjunctural determinants to the capacity of regions to create new industrial projects. This study is concerned with establishing the influence of geographical variables on the setting up of new manufacturing companies. The Spanish autonomous communities (NUTS-2) have been taken as the units of analysis for the period 1980-1992. KEY WORDS: Firm start-ups, industrial dynamics, geographical determinants, Spanish regions. (*) Department of Economics UNIVERSITY ROVIRA I VIRGILI Avda. de la Universitat, 1 43204 REUS (SPAIN) Phone: (+34)-77-759800 Fax: (+34)-77-759814 e-mail: [email protected] (**) Department of Economic Policy and EEM UNIVERSITY OF BARCELONA Avda Diagonal, 690 08034 BARCELONA (SPAIN) Phone: (+34)-3-4021945 Fax: (+34)-3-4024573 e-mail: [email protected] (♣)This research is supported by the CICYT grant SEC1999-0432. 2 1.- INTRODUCTION. Regional economic well-being has been traditionally associated with, among many other variables, strong business dynamics and, in particular, with high rates of new business formation. In the last ten to fifteen years much empirical work has been produced that tries to better understand the relationship between regional deve

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