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Effects of New Business Formation on Regional Development OverTime
The authors analyze the impact of new business formation on regional employment change and identified considerable time lags. Results indicate that the indirect effects of new business formation are of greater magnitude than the direct effect, i.e. the jobs that are created in the new entities.
Link
ftp://papers.mpiew-jena.mpg.de/egp/discussionpapers/2004-36.pdf