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Vol.2 , No. 4, Publication Date: Jul. 29, 2015, Page: 33-39
| [1] | Matilda Alexandrova, Department of Management, University of National and World Economy, Sofia, Bulgaria. |
Regional characteristics appear to be influential on the formation of business start-ups and provide better insights to designing effective policies toward local development. It was in large extent valid for Bulgaria during the process of EU integration as well as full EU membership since 2007. This paper identifies the effects of some regional determinants contributing to new businesses formation in 28 Bulgarian districts. The empirical model includes six regional determinants: firms’ density, large firms’ growth rate, population density, unemployment rate, wage level, and FDI stock changes. The study provides estimates of their effects by a multiple nonlinear regression model using official data for the period 2005-2013. The study suggests evidence for a significant impact of four determinants – density of existing firms, growth of the number of large firms, wage level, and changes in FDI stock – on the regional variation in new business start-up rates in Bulgarian districts for that period.
Keywords
New Businesses Formation, Regional Determinants, Bulgaria
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