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| Tekijä: | Huiban, J. |
| Otsikko: | The spatial demography of new plants: urban creation and rural survival |
| Lehti: | Small business economics
2011 : JUL, VOL. 37:1 p. 73-86 |
| Asiasana: | location of industry new enterprise rural industries entrepreneurship factories |
| Vapaa asiasana: | urban businesses |
| Kieli: | eng |
| Tiivistelmä: | This study shows the survival rate of new plants depending on their spatial location. A panel data set of French plants, observed during 1993-2002, provides annual samples of over 300,000 new plants, each plant being defined as rural, peri-urban, urban or located in the Paris region. A survival model is developed, including the location variable alongside the common survival determinants, such as size, industry and period. The results clearly imply that it is easier to create a new plant in urban areas, especially in the Paris region, but less difficult to survive in rural areas. Agglomeration forces may be the reason behind the first result, and the intensity of local competition variable behind the second. However, even when the local competition effect is controlled, rural new plants still achieve significantly higher survival rates. The entrepreneurial theory of opportunity may help in understanding such a result. The population density, activities and information offer more opportunities in starting an activity, but also to quit it once it has been created. |
SCIMA