Spatio-temporal persistence of municipal rates of business start-ups in Chile

Produced by: 
Universidad Católica de Chile
Available from: 
July 2015
Paper author(s): 
Mauricio Oyarzo
Gianni Romani
Miguel Atienza
Marcelo Lufin
Topic: 
Microeconomics - Competition - Productivity
Year: 
2015

This work investigates the spatio-temporal persistence of municipal rates of business start-ups in Chile between 2005 and 2011, using the database of the Internal Revenue Service (SII). The analysis was made with descriptive statistical, non-parametric tests and econometric models. The results show persistent spatio-temporal clusters, representing favorable and unfavorable environments for entrepreneurship, as well as a high probability of any municipality remaining in the same cluster. The factors that explain persistence reveal distinct effects on start-up creation for each level of municipal entrepreneurship, which suggests the need for policies that take into account the spatial differences in entrepreneurial dynamism.

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