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Spatial impact of entrepreneurial zones: firm, city, and inter city evidence

Stojcic, Nebojsa and Pylak, Korneliusz and Jurlina Alibegovic, Dubravka (2022): Spatial impact of entrepreneurial zones: firm, city, and inter city evidence. Forthcoming in: Regional Studies

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Abstract

We investigate the impact of a decade-long large public entrepreneurial infrastructure investment programme in an emerging European economy. Using a unique dataset, we examine the short-run firm, city and inter-city effects of entrepreneurial zones (EZs). EZs have a positive impact on business investment, sales and especially export revenues of firms located within them. Positive economic effects of EZs are limited on host and neighbouring towns and cities, decrease with distance and eventually become negative. This points to the localised nature of EZs effects and their potential for spatial redistribution and clustering of economic activity.

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