Urban spatial structure and entrepreneurship: sectoral and developmental heterogeneities

Source abstract

This paper examines the impacts of urban spatial structure on entrepreneurship in the context of China. Using a novel spatial structure index and panel regression models, we find positive impacts of monocentricity on new firm formation in the manufacturing sector, but negative impacts on entrepreneurship in the high-tech service sector. These findings depend on the developmental stages of the region. Furthermore, we confirm that low land costs drive the agglomeration of new manufacturing firms in monocentric cities, and high consumption amenities lead new firms in the high-tech service sector to locate in polycentric cities.