Scandinavian Working Papers in Economics

HUI Working Papers,
HUI Research

No 53: New Start-ups and Firm In-migration - Evidence from the Swedish Wholesale Trade Industry

Sven-Olov Daunfeldt , Niklas Elert and Niklas Rudholm ()
Additional contact information
Sven-Olov Daunfeldt: HUI Research, Postal: SE-103 29 Stockholm, Sweden, and Department of Economics, Dalarna University, SE-781 88 Borlänge, Sweden
Niklas Elert: The Ratio Institute, Postal: P.O. Box 3203, SE-103 64 Stockholm, Sweden; and Department, of Economics, Dalarna University, SE-781 88 Borlänge, Sweden.
Niklas Rudholm: HUI Research, Postal: SE-103 29 Stockholm, Sweden, and Department of Economics, Dalarna University, SE-781 88 Borlänge, Sweden

Abstract: The purpose of this paper is to distinguish between the determinants of new start-ups and in-migration of firms using a data-set that covers 13,471 limited liability firms in the Swedish wholesale trade industries during the period 2000-2004. Our results indicate that the presence of a university more than doubles the expected number of entrants and increases the expected number of in-migrating firms with 30%. A large share of educated workers and a high local unemployment rate is also associated with more start-ups and firm in-migration.

Keywords: Firm growth; firm size; job creation; small firms

JEL-codes: L11; L25; L26

34 pages, July 1, 2011

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