Research Article
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Year 2017, , 154 - 163, 30.06.2017
https://doi.org/10.17261/Pressacademia.2017.445

Abstract

References

  • Acs, Z. J., & Armington, C. (2004). The impact of geographic differences in human capital on service firm formation rates. Journal of Urban Economics, 56(2), 244-278.
  • Arauzo-Carod, J. M., & Teruel-Carrizosa, M. (2005). An Urban Approach to Firm Entry: The Effect of Urban Size. Growth and Change, 36(4), 508-528.
  • Ashcroft, B. & Love J. H. (1996). Employment Change and New Firm Formation, in UK Countries 1981-89. In M. W. Danson (Ed.), Small Firm Formation and Regional Economic Development. London: Routledge Studies in Small Business.
  • Audretsch, D. B., & Fritsch, M. (1994). The geography of firm births in Germany. Regional studies, 28(4), 359-365.
  • Audretsch, D. B., Keilbach, M. C. & Lehmann, E. E. (2006). Entrepreneurship and Economic Growth. New York, NY USA: Oxford University Press
  • Banking Regulation and Supervision Agency.(2012, July 26). BRSA Main Page.Retrieved from http://www.bddk.org.tr/Websitesi/English.asp
  • Baptista, R., Escária, V., & Madruga, P. (2008). Entrepreneurship, regional development and job creation: the case of Portugal. Small Business Economics, 30(1), 49-58.
  • Blasco, A. S., & Fornieles, M. R. C. (2001). Geographical determinants of the creation of manufacturing firms: The regions of Spain (No. 68). Universitat de Barcelona. Espai de Recerca en Economia.
  • Bosma, N., Van Stel, A., & Suddle, K. (2008). The geography of new firm formation: Evidence from independent start-ups and new subsidiaries in the Netherlands. International Entrepreneurship and Management Journal, 4(2), 129-146.
  • Calá, C. D., Arauzo-Carod, J. M., & Manjón-Antolín, M. (2017). Determinants of New Firm Formation in Developing Countries: A Review. International Review of Entrepreneurship, 15(1).
  • Calá, C. D., Manjón‐Antolín, M., & Arauzo‐Carod, J. M. (2016). Regional determinants of firm entry in a developing country. Papers in Regional Science, 95(2), 259-279.
  • Carree, M. A., & Thurik, A. R. (2010). The impact of entrepreneurship on economic growth. In Handbook of entrepreneurship research (pp. 557-594). Springer New York.
  • Central Bank of the Republic of Turkey (2012, October 4). TCMB Main Page. Retrieved from http://www.tcmb.gov.tr/yeni/eng/.
  • Choi, Y. R., & Phan, P. H. (2006). The influences of economic and technology policy on the dynamics of new firm formation. Small Business Economics, 26(5), 493-503.
  • Davidsson, P., Lindmark, L., & Olofsson, C. (1994). New firm formation and regional development in Sweden. Regional Studies, 28(4), 395-410.
  • Durusoy, R. (2005). Population Projection Methods, Department of Public Health Seminar Program. Izmir: Ege University.
  • Evans, D. S., & Jovanovic, B. (1989). An estimated model of entrepreneurial choice under liquidity constraints. Journal of political economy, 97(4), 808-827.
  • Franke, G. R. (2010). Multicollinearity. Wiley International Encyclopedia of Marketing.
  • Fritsch, M. (1992). Regional differences in new firm formation: evidence from West Germany. Regional Studies, 26(3), 233-241.
  • Fritsch, M., Brixy, U., & Falck, O. (2006). The effect of industry, region, and time on new business survival–a multi-dimensional analysis. Review of industrial organization, 28(3), 285-306.
  • Fritsch, M., & Falck, O. (2003). New firm formation by industry over space and time: A multi-level analysis (No. 322). DIW Discussion Papers.
  • Fritsch, M., & Mueller, P. (2006). The evolution of regional entrepreneurship and growth regimes. In Entrepreneurship in the region (pp. 225-244). New York: Springer.
  • Fotopoulos, G., & Spence, N. (1999). Spatial variations in new manufacturing plant openings: Some empirical evidence from Greece. Regional Studies, 33(3), 219-229.
  • Garofoli, G. (1994). New firm formation and regional development: the Italian case. Regional studies, 28(4), 381-393.
  • Greene, W.H. (2011). Econometric Analysis. (7th ed). New York University: Pearson Prentice Hall.
  • Günalp, B., & Cilasun, S. M. (2006). Determinants of entry in Turkish manufacturing industries. Small Business Economics, 27(2), 275-287.
  • Johannisson, B. (1984). A Cultural Perspectives on Small Business-Local Business Climate. International Small Business Journal, 2(4), 32-43.
  • Johnson, S., McMillan, J., & Woodruff, C. (2000). Entrepreneurs and the ordering of institutional reform: Poland, Slovakia, Romania, Russia and Ukraine compared. Economics of Transition, 8(1), 1-36.
  • Kangasharju, A. (2000). Regional variations in firm formation: Panel and cross‐section data evidence from Finland. Papers in Regional Science, 79(4), 355-373.
  • Karlsson, C., & Backman, M. (2011). Accessibility to human capital and new firm formation. International Journal of Foresight and Innovation Policy, 7(1-3), 7-22.
  • Keeble, D., & Walker, S. (1994). New firms, small firms and dead firms: spatial patterns and determinants in the United Kingdom. Regional studies, 28(4), 411-427.
  • Kobi-Line Support Centre. (2012, October 4). Kobi-Line Home Page. Retrieved from http://www.kobi-line.com.
  • Lingelbach, DC, De La Vina, L & Asel, P (2005). What's Distinctive about Growth-Oriented Entrepreneurship in Developing Countries? (Center for Global Entrepreneurship). San Antonio, Texas: UTSA College of Business.
  • Mason C. (1991) Spatial Variations in Enterprise: The Geography of New Firm Formation. In R. Burrows (Ed.), Deciphering the Enterprise Culture: Entrepreneurship, Petty Capitalism and the Restructuring of Britain (pp. 74-106). New York: Routledge.
  • McMillan, J., & Woodruff, C. (2002). The central role of entrepreneurs in transition economies. The Journal of Economic Perspectives, 16(3), 153-170.
  • Nystrom, K. (2005), Determinants of Regional Entry and Exit in Industrial Sectors. (CESIS No. 33).
  • Okamuro, H., & Kobayashi, N. (2006). The Impact of Regional Factors on the Start‐Up Ratio in Japan. Journal of Small Business Management, 44(2), 310-313.
  • Ozturk, S., & Kilic, C. (2012). Patterns and determinants of entry and exit in Turkish manufacturing industries. International Journal of Arts and Commerce, 1(5), 107-118.
  • Pereira, A. A. (2004). State entrepreneurship and regional development: Singapore's industrial parks in Batam and Suzhou. Entrepreneurship & Regional Development, 16(2), 129-144.
  • Reynolds, P. (1994). Autonomous firm dynamics and economic growth in the United States, 1986–1990. Regional Studies, 28(4), 429-442.
  • Reynolds, P., Storey, D. J., & Westhead, P. (1994). Cross-national comparisons of the variation in new firm formation rates. Regional Studies, 28(4), 443-456.
  • Santarelli, E., Carree, M., & Verheul, I. (2009). Unemployment and firm entry and exit: an update on a controversial relationship. Regional Studies, 43(8), 1061-1073.
  • Schmidheiny, K. (2012). Short Guides to Microeconometrics. Panel Data: Fixed and Random Effects. Basel: Universitat Basel.
  • Shane, S. (1996). Explaining variation in rates of entrepreneurship in the United States: 1899–1988. Journal of Management, 22(5), 747-781.
  • Sutaria, V., & Hicks, D. A. (2004). New firm formation: Dynamics and determinants. The Annals of Regional Science, 38(2), 241-262.
  • Turkish Patent Institute. (2012, July 26). TSI Patent Statistics. Retrieved from http://www.tpe.gov.tr/portal/default2.jsp?sayfa=139.
  • Turkish Statistical Institute. (2012, July 25). TSI Regional Statistics. Retrieved from http://tuikapp.tuik.gov.tr/Bölgesel/menuAction.do?dil =en#>.
  • Van Stel, A., & Suddle, K. (2008). The impact of new firm formation on regional development in the Netherlands. Small Business Economics, 30(1), 31-47.
  • Wennekers, S., & Thurik, R. (1999). Linking entrepreneurship and economic growth. Small business economics, 13(1), 27-56.
  • Wang, S. W. (2006). Determinants of new firm formation in Taiwan. Small Business Economics, 27(4), 313-321.
  • Wong, P. K., Ho, Y. P., & Autio, E. (2005). Entrepreneurship, innovation and economic growth: Evidence from GEM data. Small business economics, 24(3), 335-350.
  • Yildiz, E.B., Sivri, U. & Berber, M. (2010, October). Socio-Economic Development Ranking of Provinces in Turkey. In proceeding of International Regional Development Symposium (pp.693-705).
  • Zerbinati, S., & Souitaris, V. (2005). Entrepreneurship in the public sector: a framework of analysis in European local governments. Entrepreneurship & regional development, 17(1), 43-64.

REGIONAL DETERMINANTS OF THE SMALL AND MEDIUM SIZE MANUFACTURING FIRM ENTRY IN A DEVELOPING COUNTRY: EVIDENCE FROM TURKEY

Year 2017, , 154 - 163, 30.06.2017
https://doi.org/10.17261/Pressacademia.2017.445

Abstract

Purpose- This
study investigates regional determinants of the small and medium size firm
entry in the manufacturing sector for a developing country, Turkey, in which
regional economic development disparities are common.

Methodology- Panel
data was collected for the period between 2004 and 2009 and analysed by using
Feasible GLS estimation technique.

Findings- The
results show that entrepreneurship culture, the structure of the industry,
industry agglomeration overall are the most important factors stimulating the
entry rates. However, the number of patent application as a supply-side
variable seems to be the main deterrent of new firm entry by working as a fence
in front of new firms.
The
average wage and low skill labor in labor force are the other factors that
negatively influence new firm formation in demand and supply side of the
economy.







Conclusion-
Some of these regional variables
affecting business formation in developed countries have no influence on the
small and medium size firm formation in developing countries. This suggests
that the determinants could be country specific.
Therefore, policy makers
should be careful while using evidence from developed countries to stimulate
firm start-ups in developing countries.

References

  • Acs, Z. J., & Armington, C. (2004). The impact of geographic differences in human capital on service firm formation rates. Journal of Urban Economics, 56(2), 244-278.
  • Arauzo-Carod, J. M., & Teruel-Carrizosa, M. (2005). An Urban Approach to Firm Entry: The Effect of Urban Size. Growth and Change, 36(4), 508-528.
  • Ashcroft, B. & Love J. H. (1996). Employment Change and New Firm Formation, in UK Countries 1981-89. In M. W. Danson (Ed.), Small Firm Formation and Regional Economic Development. London: Routledge Studies in Small Business.
  • Audretsch, D. B., & Fritsch, M. (1994). The geography of firm births in Germany. Regional studies, 28(4), 359-365.
  • Audretsch, D. B., Keilbach, M. C. & Lehmann, E. E. (2006). Entrepreneurship and Economic Growth. New York, NY USA: Oxford University Press
  • Banking Regulation and Supervision Agency.(2012, July 26). BRSA Main Page.Retrieved from http://www.bddk.org.tr/Websitesi/English.asp
  • Baptista, R., Escária, V., & Madruga, P. (2008). Entrepreneurship, regional development and job creation: the case of Portugal. Small Business Economics, 30(1), 49-58.
  • Blasco, A. S., & Fornieles, M. R. C. (2001). Geographical determinants of the creation of manufacturing firms: The regions of Spain (No. 68). Universitat de Barcelona. Espai de Recerca en Economia.
  • Bosma, N., Van Stel, A., & Suddle, K. (2008). The geography of new firm formation: Evidence from independent start-ups and new subsidiaries in the Netherlands. International Entrepreneurship and Management Journal, 4(2), 129-146.
  • Calá, C. D., Arauzo-Carod, J. M., & Manjón-Antolín, M. (2017). Determinants of New Firm Formation in Developing Countries: A Review. International Review of Entrepreneurship, 15(1).
  • Calá, C. D., Manjón‐Antolín, M., & Arauzo‐Carod, J. M. (2016). Regional determinants of firm entry in a developing country. Papers in Regional Science, 95(2), 259-279.
  • Carree, M. A., & Thurik, A. R. (2010). The impact of entrepreneurship on economic growth. In Handbook of entrepreneurship research (pp. 557-594). Springer New York.
  • Central Bank of the Republic of Turkey (2012, October 4). TCMB Main Page. Retrieved from http://www.tcmb.gov.tr/yeni/eng/.
  • Choi, Y. R., & Phan, P. H. (2006). The influences of economic and technology policy on the dynamics of new firm formation. Small Business Economics, 26(5), 493-503.
  • Davidsson, P., Lindmark, L., & Olofsson, C. (1994). New firm formation and regional development in Sweden. Regional Studies, 28(4), 395-410.
  • Durusoy, R. (2005). Population Projection Methods, Department of Public Health Seminar Program. Izmir: Ege University.
  • Evans, D. S., & Jovanovic, B. (1989). An estimated model of entrepreneurial choice under liquidity constraints. Journal of political economy, 97(4), 808-827.
  • Franke, G. R. (2010). Multicollinearity. Wiley International Encyclopedia of Marketing.
  • Fritsch, M. (1992). Regional differences in new firm formation: evidence from West Germany. Regional Studies, 26(3), 233-241.
  • Fritsch, M., Brixy, U., & Falck, O. (2006). The effect of industry, region, and time on new business survival–a multi-dimensional analysis. Review of industrial organization, 28(3), 285-306.
  • Fritsch, M., & Falck, O. (2003). New firm formation by industry over space and time: A multi-level analysis (No. 322). DIW Discussion Papers.
  • Fritsch, M., & Mueller, P. (2006). The evolution of regional entrepreneurship and growth regimes. In Entrepreneurship in the region (pp. 225-244). New York: Springer.
  • Fotopoulos, G., & Spence, N. (1999). Spatial variations in new manufacturing plant openings: Some empirical evidence from Greece. Regional Studies, 33(3), 219-229.
  • Garofoli, G. (1994). New firm formation and regional development: the Italian case. Regional studies, 28(4), 381-393.
  • Greene, W.H. (2011). Econometric Analysis. (7th ed). New York University: Pearson Prentice Hall.
  • Günalp, B., & Cilasun, S. M. (2006). Determinants of entry in Turkish manufacturing industries. Small Business Economics, 27(2), 275-287.
  • Johannisson, B. (1984). A Cultural Perspectives on Small Business-Local Business Climate. International Small Business Journal, 2(4), 32-43.
  • Johnson, S., McMillan, J., & Woodruff, C. (2000). Entrepreneurs and the ordering of institutional reform: Poland, Slovakia, Romania, Russia and Ukraine compared. Economics of Transition, 8(1), 1-36.
  • Kangasharju, A. (2000). Regional variations in firm formation: Panel and cross‐section data evidence from Finland. Papers in Regional Science, 79(4), 355-373.
  • Karlsson, C., & Backman, M. (2011). Accessibility to human capital and new firm formation. International Journal of Foresight and Innovation Policy, 7(1-3), 7-22.
  • Keeble, D., & Walker, S. (1994). New firms, small firms and dead firms: spatial patterns and determinants in the United Kingdom. Regional studies, 28(4), 411-427.
  • Kobi-Line Support Centre. (2012, October 4). Kobi-Line Home Page. Retrieved from http://www.kobi-line.com.
  • Lingelbach, DC, De La Vina, L & Asel, P (2005). What's Distinctive about Growth-Oriented Entrepreneurship in Developing Countries? (Center for Global Entrepreneurship). San Antonio, Texas: UTSA College of Business.
  • Mason C. (1991) Spatial Variations in Enterprise: The Geography of New Firm Formation. In R. Burrows (Ed.), Deciphering the Enterprise Culture: Entrepreneurship, Petty Capitalism and the Restructuring of Britain (pp. 74-106). New York: Routledge.
  • McMillan, J., & Woodruff, C. (2002). The central role of entrepreneurs in transition economies. The Journal of Economic Perspectives, 16(3), 153-170.
  • Nystrom, K. (2005), Determinants of Regional Entry and Exit in Industrial Sectors. (CESIS No. 33).
  • Okamuro, H., & Kobayashi, N. (2006). The Impact of Regional Factors on the Start‐Up Ratio in Japan. Journal of Small Business Management, 44(2), 310-313.
  • Ozturk, S., & Kilic, C. (2012). Patterns and determinants of entry and exit in Turkish manufacturing industries. International Journal of Arts and Commerce, 1(5), 107-118.
  • Pereira, A. A. (2004). State entrepreneurship and regional development: Singapore's industrial parks in Batam and Suzhou. Entrepreneurship & Regional Development, 16(2), 129-144.
  • Reynolds, P. (1994). Autonomous firm dynamics and economic growth in the United States, 1986–1990. Regional Studies, 28(4), 429-442.
  • Reynolds, P., Storey, D. J., & Westhead, P. (1994). Cross-national comparisons of the variation in new firm formation rates. Regional Studies, 28(4), 443-456.
  • Santarelli, E., Carree, M., & Verheul, I. (2009). Unemployment and firm entry and exit: an update on a controversial relationship. Regional Studies, 43(8), 1061-1073.
  • Schmidheiny, K. (2012). Short Guides to Microeconometrics. Panel Data: Fixed and Random Effects. Basel: Universitat Basel.
  • Shane, S. (1996). Explaining variation in rates of entrepreneurship in the United States: 1899–1988. Journal of Management, 22(5), 747-781.
  • Sutaria, V., & Hicks, D. A. (2004). New firm formation: Dynamics and determinants. The Annals of Regional Science, 38(2), 241-262.
  • Turkish Patent Institute. (2012, July 26). TSI Patent Statistics. Retrieved from http://www.tpe.gov.tr/portal/default2.jsp?sayfa=139.
  • Turkish Statistical Institute. (2012, July 25). TSI Regional Statistics. Retrieved from http://tuikapp.tuik.gov.tr/Bölgesel/menuAction.do?dil =en#>.
  • Van Stel, A., & Suddle, K. (2008). The impact of new firm formation on regional development in the Netherlands. Small Business Economics, 30(1), 31-47.
  • Wennekers, S., & Thurik, R. (1999). Linking entrepreneurship and economic growth. Small business economics, 13(1), 27-56.
  • Wang, S. W. (2006). Determinants of new firm formation in Taiwan. Small Business Economics, 27(4), 313-321.
  • Wong, P. K., Ho, Y. P., & Autio, E. (2005). Entrepreneurship, innovation and economic growth: Evidence from GEM data. Small business economics, 24(3), 335-350.
  • Yildiz, E.B., Sivri, U. & Berber, M. (2010, October). Socio-Economic Development Ranking of Provinces in Turkey. In proceeding of International Regional Development Symposium (pp.693-705).
  • Zerbinati, S., & Souitaris, V. (2005). Entrepreneurship in the public sector: a framework of analysis in European local governments. Entrepreneurship & regional development, 17(1), 43-64.
There are 53 citations in total.

Details

Journal Section Articles
Authors

Mustafa Ozer

Publication Date June 30, 2017
Published in Issue Year 2017

Cite

APA Ozer, M. (2017). REGIONAL DETERMINANTS OF THE SMALL AND MEDIUM SIZE MANUFACTURING FIRM ENTRY IN A DEVELOPING COUNTRY: EVIDENCE FROM TURKEY. Journal of Economics Finance and Accounting, 4(2), 154-163. https://doi.org/10.17261/Pressacademia.2017.445

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