Abstract
The prevalence of entrepreneurship varies
not only across regions but also among
industries. Using a unique panel dataset of
60 two-digit industries across 64
provinces from 2000 to 2010 in Vietnam,
we investigate the importance of spatial
and sectoral heterogeneity in an analysis
of the determinants of entrepreneurship
and empirically explore the interaction
effect of geographic conditions and
industry dynamism. Overall, our results
confirm the significance of industry
structural variables and their joint effect
with geographic conditions in fostering
new firm formation. Particularly, (i)
growth-driven entries are generally higher
in provinces that offer higher salaries; (ii)
technology-intensive industries within
regions that have strong knowledge
spillover effects are appealing to new
entries. Others noteworthy findings
include: (i) ‘necessity entrepreneurship’ is
prevalent in Vietnam, but limited to
extractive and service industries that are
typically labor intensive; (ii) firms tend to
concentrate more in agglomerated
locations. This effect, however, evaporates
for high-tech industries; and (iii) industry
profitability and niche dynamism all play a
crucial role in stimulating new start-ups.
We apply the system generalized method
of moments to obtain empirical evidence in
the study.
| Original language | English |
|---|---|
| Pages (from-to) | 69-100 |
| Journal | The Annals of Regional Science |
| Volume | 59 |
| Issue number | 1 |
| Early online date | 28 Feb 2017 |
| DOIs | |
| Publication status | E-pub ahead of print - 28 Feb 2017 |