Abstract
Venture migration, in addition to firm entry and exit, affects business stock in a region. This study draws on mainstream entrepreneurship and economic geography literatures to explore the factors explaining net venture migration. Using a data-set on 88 Ohio counties during 2000-2006, it suggests that venture migration is largely a quest for a low-hanging fruit. Relocating firms are drawn to areas with higher sales tax rates that give them access to interest-free financing, higher unemployment rates and better-qualified workforce as well as ample arbitrage opportunities. At the same time, innovative opportunities do not attract migrating ventures.
| Original language | English |
|---|---|
| Pages (from-to) | 423-445 |
| Number of pages | 23 |
| Journal | Entrepreneurship and Regional Development |
| Volume | 25 |
| Issue number | 5-6 |
| DOIs | |
| Publication status | Published - 1 Jun 2013 |
| Externally published | Yes |
Keywords
- arbitrage opportunities
- individual-opportunity nexus
- tax rates
- venture migration
ASJC Scopus subject areas
- Business and International Management
- Economics and Econometrics