Location and Its Role in Net Entry of New Firms in Manufacturing Industries of Iran

Document Type : Research Paper



Although entry of new firms is influenced by regional differences‚ the impact of location dimensions on entry has been received less attention in the literature of Iran's economy and hence this study tries to examine net entry of new industrial firms with the use of ten demographics characteristics in the regions of country during 2005 to 2013. In this study‚ econometric panel data methods have been used to estimate the possible effects of demographics variables on net entry of new firms. The results of this study showed a significant and positive relationship between net entry of new firms with variables of employment growth‚ the growth of bank deposits‚ population growth and security in the regions. On this basis and in terms of regional policy‚ the results of this study show that net entry of new firms in the region can be predicted based on environmental factors. Therefore‚ the net entry of new firms in the regions is not accidental and environmental variables affect it significantly.
JEL Classification: L26‚ L25‚ L1


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Volume 51, Issue 3 - Serial Number 116
October 2016
Pages 682-653
  • Receive Date: 31 July 2015
  • Revise Date: 04 December 2015
  • Accept Date: 14 February 2016
  • First Publish Date: 22 October 2016