Search

Drawing on location theory, the local relationships between new firm formation and its determinants are explored in 290 municipalities across Sweden. From the robust geographically weighted regression (GWR) models, mostly positive relationships with new firm formation are shown for firm density, human capital level, industry diversification level and percentage of immigrants living in the area. In contrast, mostly negative relationships are shown for weighted mean distance to the nearest bank branches, establishment size, unemployment rate, industry specialization. This paper shows that the weighted distance to bank branches affect new firm formation negatively and this negative relationship is consistent across all the Swedish municipalities., QCR 20201020

Drawing on location theory, the local relationships between new firm formation and its potential determinants are explored in 290 municipalities across Sweden. From the geographically weighted regression (GWR) model in 2013, mostly positive relationships with new firm formation are shown for firm density, human capital level, industry diversification level and percentage of immigrants living in the area. Mostly negative relationships are shown for weighted mean distance to the nearest bank branches, establishment size, unemployment rate, industry specialization. Spatially constrained multivariate clustering is also applied to group municipalities with similar conditions. Implications of the GWR modelling and cluster analysis are then discussed., QC 20201020

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130

The dynamics of banking accessibility and its relationship with new firm formation can vary across space and time due to spatial contexts. With increasing bank branch closures in Sweden, it is even more critical to understand where interventions are needed and at which scale, in order to implement effective policy. Thus, spatial context is incorporated into the analysis with the use of the multiscale geographically weighted regression (MGWR) model. To overcome a potential endogeneity problem, an instrumental variable approach is applied. A two-stage least squares (2SLS) model is employed in which two instrumental variables are utilised to instrument the physical accessibility to the nearest bank branch in 2013. The MGWR results show that the geographical distance to the nearest bank branch has a negative association with the new firm formation in all Swedish municipalities, with little-to-no spatial heterogeneity. Further robustness tests show that the relationship between the geographical distance to the nearest bank branch and new firm formation are weaker in 2007, which shows temporal changes in the strength of the relationship over time. A policy implication from the analysis shows it is ideal to focus on the geographical accessibility to bank branches in all the Swedish municipalities with a single policy., QC 20211130