1st Edition

The Dynamics of New Firm Formation

By Vinod Sutaria Copyright 2001
    108 Pages
    by Routledge

    This title was first published in 2001. The dynamics of New Firm Formation (NFF) are central to the phenomenon of economic growth and development. While the economic importance of NFF has been recognized, the mechanisms that drive NFF are not well documented or understood. Illustrated by an in-depth case study from Texas, this volume analyzes the relationships between NFF and its localized context. Using specially-formulated fixed-effects regression models, the study brings about controversial new findings. These provide a counterpoint to the neoclassical theory that there is an adversarial relationship between small and large firms by instead suggesting that the relationship is more of a symbiotic one. Furthermore, it suggests that deep churning - the turnover and replacement in a business base - is a key factor in understanding the forces shaping regional economies.

    Contents: Introduction; Theoretical background and empirical evidence; Research design and model development; Determinants of new firm formation; Summary and policy implications; Appendices; Bibliography; Index.


    Vinod Sutaria

    ’This is an important study of new firm formation, with considerable implications for economic growth and development. Innovative features include accounting for regional differences as well as identifying factors affecting new firm formation as against those with no effect.’ Professor Irving Hoch, University of Texas, USA 'Sutaria has put much work into this research, which certainly I would congratulate.' Australasian Journal of Regional Studies