Why there are more entrepreneurs-manufacturers in one regions and less in others: an empirical evidence

Abstract

This article describes existence differences in the level of entrepreneurship in manufacturing industry among Russian regions with particular attention to European and Siberian territories of the country. I tested the hypothesis that regions are more entrepreneurial if they will contain more urbanization, higher shares of educated and young people and better transport infrastructure. I analyzed panel data for 80 regions for a time period since 2005 till 2011 years. The estimations showed that the existence of differences were predicted by variables: the share of young people, the rate of agglomeration, the share of people with tertiary education (specialist’s diploma), the transport infrastructure and the specialization of those territories. At that time, the share of employed population with tertiary education is not significant for European part of Russia and significant for Siberia. Thus, human capital is more important for Siberian entrepreneurs than transport infrastructure than in European part of Russia.

Keywords

• entrepreneurship
• panel data
• regional economics
• regional differentiation