Regional Market Potential and the Number and Size of Firms: Observations and Evidence from Chile

Felix Modrego; Philip McCann; William E. Foster; M. Rose Olfert

doi:10.1080/17421772.2014.930165

Regional Market Potential and the Number and Size of Firms: Observations and Evidence from Chile

Felix Modrego^*, Philip McCann, William E. Foster, M. Rose Olfert

^*Corresponding author for this work

Urban and Regional Studies Institute

Research output: Contribution to journal › Article › Academic › peer-review

17 Citations (Scopus)

2 Downloads (Pure)

Abstract

This paper investigates the relationship between market potential and the spatial variation in the number and the average size of firms. We adapt the canonical model of the New Economic Geography to demonstrate this relationship and to derive an empirical specification suitable for estimation through dynamic panel techniques. The model is tested against municipal data on the number of firms per adult in Chilean comunas for 2005-2010. Our results confirm that market potential along with place-specific fixed costs play an important role in determining the spatial variation in the number of firms per capita.

Original language	English
Pages (from-to)	327-348
Number of pages	22
Journal	Spatial Economic Analysis
Volume	9
Issue number	3
DOIs	https://doi.org/10.1080/17421772.2014.930165
Publication status	Published - Sept-2014

Keywords

Firm number
firm size
market potential
new economic geography
Chile
START-UPS
SPATIAL-DISTRIBUTION
INCREASING RETURNS
DETERMINANTS
ENTREPRENEURSHIP
EMPLOYMENT
US
LOCALIZATION
PERFORMANCE
TECHNOLOGY

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Regional Market Potential and the Number and Size of FirmsFinal publisher's version, 501 KBLicence: Taverne

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title = "Regional Market Potential and the Number and Size of Firms: Observations and Evidence from Chile",

abstract = "This paper investigates the relationship between market potential and the spatial variation in the number and the average size of firms. We adapt the canonical model of the New Economic Geography to demonstrate this relationship and to derive an empirical specification suitable for estimation through dynamic panel techniques. The model is tested against municipal data on the number of firms per adult in Chilean comunas for 2005-2010. Our results confirm that market potential along with place-specific fixed costs play an important role in determining the spatial variation in the number of firms per capita.",

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author = "Felix Modrego and Philip McCann and Foster, {William E.} and Olfert, {M. Rose}",

year = "2014",

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doi = "10.1080/17421772.2014.930165",

language = "English",

volume = "9",

pages = "327--348",

journal = "Spatial Economic Analysis",

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T1 - Regional Market Potential and the Number and Size of Firms

T2 - Observations and Evidence from Chile

AU - Modrego, Felix

AU - McCann, Philip

AU - Foster, William E.

AU - Olfert, M. Rose

PY - 2014/9

Y1 - 2014/9

N2 - This paper investigates the relationship between market potential and the spatial variation in the number and the average size of firms. We adapt the canonical model of the New Economic Geography to demonstrate this relationship and to derive an empirical specification suitable for estimation through dynamic panel techniques. The model is tested against municipal data on the number of firms per adult in Chilean comunas for 2005-2010. Our results confirm that market potential along with place-specific fixed costs play an important role in determining the spatial variation in the number of firms per capita.

AB - This paper investigates the relationship between market potential and the spatial variation in the number and the average size of firms. We adapt the canonical model of the New Economic Geography to demonstrate this relationship and to derive an empirical specification suitable for estimation through dynamic panel techniques. The model is tested against municipal data on the number of firms per adult in Chilean comunas for 2005-2010. Our results confirm that market potential along with place-specific fixed costs play an important role in determining the spatial variation in the number of firms per capita.

KW - Firm number

KW - firm size

KW - market potential

KW - new economic geography

KW - Chile

KW - START-UPS

KW - SPATIAL-DISTRIBUTION

KW - INCREASING RETURNS

KW - DETERMINANTS

KW - ENTREPRENEURSHIP

KW - EMPLOYMENT

KW - US

KW - LOCALIZATION

KW - PERFORMANCE

KW - TECHNOLOGY

U2 - 10.1080/17421772.2014.930165

DO - 10.1080/17421772.2014.930165

M3 - Article

SN - 1742-1772

VL - 9

SP - 327

EP - 348

JO - Spatial Economic Analysis

JF - Spatial Economic Analysis

IS - 3

ER -

Regional Market Potential and the Number and Size of Firms: Observations and Evidence from Chile

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Keywords

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