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Geographical concentration, entrepreneurship and regional growth: Evidence from regional data in Sweden, 1975-99

Book or journal references : Regional Studies, vol. 38, pp. 929-947 (2004).

Author(s) : Braunerhjelm , P. and Borgman , B.

Abstract :

Geographical concentration, entrepreneurship and regional growth: evidence from regional data in Sweden, 1975-99, Regional Studies 38, 929-947. This paper implements Swedish data cross-tabulated on 143 industries (four-digit level) and 70 labour market regions for 1975-99 to examine empirically the degree of concentration in the production of goods and services, the relationship between concentration and regional growth, and the role of regional entrepreneurship. To our knowledge, these issues have not been analysed previously at this level of aggregation. Ellison-Glaeser indexes and Gini location quotients reveal a geographical concentration in Swedish industry that is stronger than in the USA. The econometric results imply a 2-6% higher growth in regionally concentrated industries. The effect is more pronounced for knowledge-intensive manufacturing, network industries and industries intensively using raw material. It is also found that regional entrepreneurship and regional absorption capacity are important explanations of regional growth, whereas the impact of the skill-level and economies of scale is more mixed.


Keywords :

regional growth; geographic concentration; entrepreneurship; skills ENDOGENOUS GROWTH; AGGLOMERATION; PRODUCTIVITY; INNOVATION; MODEL

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