This article seeks to examine spatially varying relationships between new firm formation and employment growth across U.S. counties. The existing empirical evidence does not provide consistent conclusions of the effect of new business formation on employment growth. The regional effects of new firm formation on employment growth are examined and emphasized in this article. It is hypothesized and tested that there are different relationships between new firm formation and employment growth across metropolitan and nonmetropolitan counties. Geographically weighted regression model is calibrated with county-level data to identify the spatially varying relationships across metropolitan and nonmetropolitan counties.
Acs, Z.J., & Armington, C. ( 2004). Employment growth and entrepreneurial activity in cities . Regional Studies, 38, 911-927.
2.
Acs, Z.J., & Armington, C. ( 2006). Entrepreneurship, geography, and American economic growth . Cambridge, MA: Cambridge University Press.
3.
Acs, Z.J., Braunerhjelm, P., Audretsch, D.B., & Carlsson, B. ( 2009). The knowledge spillover theory of entrepreneurship. Small Business Economics, 32, 15-30.
4.
Acs, Z.J., & Mueller, P. ( 2008). Employment effects of business dynamics: Mice, gazelles and elephants. Small Business Economics, 30, 85-100.
5.
Ali, K., Partridge, M.D., & Olfert, M.R. ( 2007). Can geographically weighted regressions improve regional analysis and policy making? International Regional Science Review, 30(3), 300-329.
6.
Anselin, L. ( 1995). Local indicators of spatial association-LISA. Geographical Analysis, 27(2), 93 -115.
7.
Atkinson, R.D. ( 2004). Reversing rural America’s economic decline: The case for a national balanced growth strategy. Washington, DC: Progressive Policy Institute.
8.
Audretsch, D.B., & Fritsch, M. ( 1994). On the measurement of entry rates. Empirica , 21, 105-113.
9.
Audretsch, D.B., & Fritsch, M. ( 1996). Creative destruction: Turbulence and economic growth . In E. Helmstadter & M. Perlman (Eds.), Behavioral norms, technological progress, and economic dynamics: Studies in Schumpeterian economics. Ann Arbor: University of Michigan Press.
10.
Audretsch, D.B., & Fritsch, M. ( 2002). Growth regimes over time and space. Regional Studies, 36, 113-124.
11.
Audretsch, D.B., & Keilbach, M. ( 2006). Entrepreneurship, growth and restructuring. In M. Casson, B. Yeung, A. Basu, & N. Wadeson (Eds.), The oxford handbook of entrepreneurship. Oxford, England: Oxford University Press.
12.
Braunerhjelm, P., & Borgman, B. ( 2004). Geographical concentration, entrepreneurship, and regional growth: Evidence from regional data in Sweden 1975-1999. Regional Studies, 38, 929-947.
13.
Brunsdon, C., Fotheringham, S., & Charlton, M. ( 1996). Geographically weighted regression: A method for exploring spatial nonstationarity. Geographical Analysis, 28, 281-298.
14.
Carree, M.A., & Thurik, A.R. ( 2003). The impact of entrepreneurship on economic growth. In Z. Acs & D. Audretsch (Eds.), Handbook of entrepreneurship research . Boston, MA: Kluwer.
Cooke, P. ( 1996). The new wave of regional innovation networks: Analysis, characteristics and strategy. Small Business Economics, 8, 159-171.
17.
Cooke, P., & Wills, D. ( 1999). Small firms, social capital and the enhancement of business performance through innovation programmes. Small Business Economics, 13, 219-234.
18.
Feldman, M.P. ( 1996). Introduction to special issue on geography and regional economic development: The role of technology-based small and medium sized firms. Small Business Economics, 8(2), 71-74.
19.
Fotheringham, A.S., Brunsdon, C., & Charlton, M. ( 2002). Geographically weighted regression: The analysis of spatially varying relationships. West Sussex, England: Wiley.
20.
Fotheringham, A.S., Brunsdon, C., & Charlton, M. ( 2003). Geographically weighted regression software (Version 2.0.5). Newcastle upon Tyne, England: Newcastle University, Department of Geography.
21.
Fotheringham, A.S., Charlton, M., & Brunsdon, C. ( 1996). The geography of parameter space: An investigation of spatial nonstationarity. International Journal of Geographical Information Systems, 10, 605-627.
22.
Fotheringham, A.S., Charlton, M., & Brunsdon, C. ( 1998). Geographically weighted regression: A natural evolution of the expansion method for spatial data analysis. Environment and Planning A, 30, 1905-1927.
23.
Fotheringham, A.S., Charlton, M., & Brunsdon, C. ( 2001). Spatial variations in school performance: A local analysis using geographically weighted regression. Geographical & Environmental Modeling, 5, 43-66.
24.
Fritsch, M. ( 1997). New firms and regional employment change. Small Business Economics, 9, 437-448.
25.
Fritsch, M. ( 2008). How does new business formation affect regional development? Introduction to the special issue. Small Business Economics , 30, 1-14.
26.
Fritsch, M., & Mueller, P. ( 2004). The effects of new business formation on regional development over time. Regional Studies, 38, 961-975.
27.
Fritsch, M., & Mueller, P. ( 2006). The evolution of regional entrepreneurship and growth regimes. In M. Fritsch & J. Schmude (Eds.), Entrepreneurship in the region. New York, NY: Springer.
28.
Fritsch, M., & Mueller, P. ( 2008). The effect of new business formation on regional development over time: The case of Germany. Small Business Economics, 30(1), 15-29.
29.
Green, A.E., & Turok, I. ( 2000). Employability, adaptability and flexibility: Changing labour market prospects. Regional Studies, 34, 599-600.
30.
Mueller, P., van Stel, A., & Storey, D. ( 2008). The effects of new firm formation on regional development over time: The case of Great Britain. Small Business Economics , 30(1), 59-71.
31.
Reynolds, P. ( 1994). Autonomous firm dynamics and economic growth in the United States, 1986-1990. Regional Studies, 28, 429-442.
32.
Reynolds, P., Miller, B., & Maki, W.R. ( 1995). Explaining regional variation in business births and deaths: U.S. 1976-1988. Small Business Economics, 7, 389-407.
33.
Reynolds, P., Storey, D.J., & Westhead, P. ( 1994). Cross-national comparisons of the variation in new firm formation rates. Regional Studies, 28, 443-456.
34.
van Stel, A., & Storey, D. ( 2004). The link between firm births and job creation: Is there a Upas Tree Effect?Regional Studies, 38, 893-909.
35.
van Stel, A., & Suddle, K. ( 2008). The impact of new firm formation on regional development in the Netherlands. Small Business Economics, 30, 31-47.
