New firms and regional economic activity in Turkey
Öz
New firms are important for local development as they create jobs and stimulate local demand. Meanwhile, firms’ location decisions are also affected by local demand and supply conditions. These potential links between firms’ location decisions and local economic conditions are theoretically discussed. However, strength of these channels over each other is less examined. We use monthly data (i.e., 2009-2021) to investigate the bi-directional relationships between new firms and regional economic activity in Turkey. Results from Panel VAR analyses confirm that new firms have strong effects on regional development which we measure by electricity consumption and employment. Moreover, our spatial extension shows that impact of new firms exceeds the administrative borders of regions. Contrariwise, the reverse case is less likely as economic activities’ impact on new firms is relatively weak. Our results validate that agglomeration of new firms have permanent positive effect on the level of economic activity in a region.
Anahtar Kelimeler
electricity consumption, employment, new firms
Destekleyen Kurum
Tubitak
Proje Numarası
121K666
Teşekkür
Prior version of this paper is presented at the 21st Annual Meetings of the Turkish Regional Science Association (Bölge Bilimi Türk Milli Komitesi). Authors are grateful for the participants for valuable comments and suggestion. Some of the discussions and analyzes carried out in this paper are produced from the research project (Impact of new firm formation on innovation performance of Turkish regions: Evidence from micro and regional data) funded by the Scientific and Research Council of Turkey (TÜBİTAK, Grant no: 121K666). Authors are grateful to TÜBİTAK for the scientific support.
Kaynakça
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