Regional Institutional Environment and Swedish Regional New Firm Formation
2008 (English)Report (Other academic)
This paper uses an institutional approach to investigate the relationship between the regionalinstitutional environment and regional new firm formation. The importance of perceivedattitudes regarding private enterprises, local taxes, political majority, the size of thegovernment sector and perceived rules and bureaucracy on new firm formation in 286Swedish municipalities are investigated. The empirical findings show that perceived positiveattitudes toward private enterprises and political governance by a right bloc majority tend tohave positive effects on regional new firm formation. A large local government sector, on theother hand, tends to have negative effects on regional new firm formation. The paper alsoexplore if the effect of different aspects of regional institutional environment on new firmformation are similar across industries. The pattern in the private service sector industries ismost similar to the overall pattern in the economy, while the only variable reflecting theregional institutional environment that influences new firm formation in manufacturingindustries is perceived rules and bureaucracy.
Place, publisher, year, edition, pages
CESIS, KTH Royal Institute of Technology , 2008. , 36 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 142
institutions, new firm formation, regions
IdentifiersURN: urn:nbn:se:kth:diva-72353OAI: oai:DiVA.org:kth-72353DiVA: diva2:487519
QC 201202092012-02-092012-01-312012-02-09Bibliographically approved