1. bookVolume 2 (2020): Issue 1 (December 2020)
Journal Details
First Published
20 Oct 2019
Publication timeframe
1 time per year
access type Open Access

Spatial changes in entrepreneurship in relation to economic crisis and recovery. Insights from Romanian counties

Published Online: 31 May 2021
Page range: 129 - 145
Journal Details
First Published
20 Oct 2019
Publication timeframe
1 time per year

Trying to explain the sources of persisting high inequalities in the regional distribution of entrepreneurship in Romania, this paper puts a spotlight on the spatial interactions among neighbour regions in a spatial modelling framework. We explored the interplay of factors that inform the territorial distribution of SMEs by employing various spatial panel data models that not only provided better estimations of the parameters, but also removed the cross – sectional dependence detected in our previous research using classic panel models. We found that the existing regional inequalities in entrepreneurial activity are strongly associated with differences in economic development, gross investments, research and development, age of the population, and and differences in regional resilience to economic crises. Additional useful information was brought about by the computation of direct and indirect effects of these factors of influence.


Agosin, M., & Mayer, R. (2000). Foreign investment in developing countries: does it crowd in domestic investment? (UNCTAD Discussion Paper 146). Retrieved from http://unctad.org/en/docs/dp_146.en.pdfSearch in Google Scholar

Ahrend, R., & Oliveira Martins, J. (2003). Creative Destruction or Destructive Perpetuation: The Role of Large State-owned Enterprises and SMEs in Romania During Transition, Post-Communist Economies, 15, 331-356. http://dx.doi.org/10.1080/1463137032000139043Search in Google Scholar

Alguacil, M., Cuadros, A., & Orts, V. (2008). EU Enlargement and Inward FDI. Review of Development Economics, 12, 594–604. DOI: 10.1111/j.1467-9361.2008.00474.xSearch in Google Scholar

Al-Hawamdeh, S. (2003). Knowledge Management: Cultivating knowledge professionals. Oxford, UK: Chandos Publishing.Search in Google Scholar

Anselin L., Le Gallo J., & Jayet, H. (2008). Spatial Panel Econometrics. In L. Matyas & P. Sevestre (eds.), The Econometrics of Panel Data – Fundamentals and Recent Developments in Theory and Practice (624–660). Springer-Verlag.Search in Google Scholar

Anselin, L. & Rey, S. (1991). Properties of Tests for Spatial Dependence in Linear Regression Models. Geographical Analysis, 23, 112–131. DOI: 10.1111/j.1538-4632.1991.tb00228.xSearch in Google Scholar

Armeanu, D., Istudor, N., & Lache, L. (2015). The role of SME‘s in assessing the contribution of entrepreneurship to GDP in the Romanian business environment. Amfiteatru Economic, 17, 198-215. Retrieved from http://www.amfiteatrueconomic.ro/temp/Articol_2380.pdfSearch in Google Scholar

Armington, C. & Acs, Z. (2002). The Determinants of Regional Variation in New Firm Formation. Regional Studies: The Journal of the Regional Studies Association, 36(1), 33-45. http://dx.doi.org/10.1080/00343400120099843Search in Google Scholar

Arnstein, V. (2015, March). Youth employment on the rise, but larger organisations lead the way. People Management. Retrieved from http://www2.cipd.co.uk/pm/peoplemanagement/b/weblog/archive/2015/03/11/just-58-per-cent-of-smes-employ-young-people-finds-cipd.aspxSearch in Google Scholar

Baltagi, B.H., Song, S.H. & Koh, W. (2003). Testing panel data regression models with spatial error correlation. Journal of Econometrics, 117, 123–150. https://doi.org/10.1016/S0304-4076(03)00120-9Search in Google Scholar

Beck, T., Demirgüç-Kunt, A. & Levine, R. (2005). SMEs, Growth and Poverty: Cross-Country Evidence. Journal of Economic Growth, 10 (3), 199-229. DOI: 10.1007/s10887-005-3533-5Search in Google Scholar

Benacek, V., Gronicki, M., Holland, D., & Sass, M. (2000). The Determinants and Impact of Foreign Direct Investment in Central and Eastern Europe: A comparison of survey and econometric evidence. Transnational Corporations, 9(3), 163-212. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi= in Google Scholar

Bourletidis, K., & Triantafyllopoulos, Y. (2014). SMEs Survival in Time of Crisis: Strategies, Tactics and Commercial Success Stories. Procedia - Social and Behavioral Sciences, 148, 639-644. https://doi.org/10.1016/j.sbspro.2014.07.092Search in Google Scholar

Breitenecker, R. J., Harms, R., Weyh, A., Maresch, D., & Kraus, S. (2016). When the difference makes a difference – the regional embeddedness of entrepreneurship. Entrepreneurship & Regional Development, 29(1-2), 71-93. http://dx.doi.org/10.1080/08985626.2016.1255432Search in Google Scholar

Buracas, A., Zvirblis, A., & Joksiene, I. (2012). Measurement of Entrepreneurship Macro Surrounding Advantages: Country’s Economic Competitiveness Approach. Inzinerine Ekonomika-Engineering Economics, 23(1), 5-13. http://dx.doi.org/10.5755/j01.ee.23.1.1219Search in Google Scholar

Burcea, M. (2012). Romanian Entrepreneurship in the Years of Economic Crisis: a Regional Approach. Ovidius University Anals. Economic Sciences Series, 12(1), 314-318. Retrieved from http://stec.univ-ovidius.ro/html/anale/RO/wp-content/uploads/2015/03/ANALE-vol-16_issue_1_site.pdfSearch in Google Scholar

Capelleras, J.-L. & Hoxha, L., (2010). Start-up size and subsequent firm growth in Kosova: the role of entrepreneurial and institutional factors, Post-Communist Economies, 22, 411-426. http://dx.doi.org/10.1080/14631377.2010.498687Search in Google Scholar

Cojocaru, F.-G. (2014). Young entrepreneurs - promoters of economic development. Management Strategies Journal, 26(4), 563-570.Search in Google Scholar

Constantin, D.L., Goschin, Z., & Drăgan, G. (2010). Implications of EU Structural Assistance to New Member States on Regional Disparities: The Question of Absorption Capacity. In R. Stimson, R.R. Stough & P. Nijkamp (eds) Endogenous Regional Growth (182-203). Cheltenham, UK, Northampon, MA, USA: Edward Elgar Publishing Ltd.Search in Google Scholar

Cravo, T.A., Becker, B., & Gourlay, A. (2015). Regional Growth and SMEs in Brazil: A Spatial Panel Approach. Regional Studies. 49:12, 1995-2016, DOI: 10.1080/00343404.2014.890704Search in Google Scholar

de Kok, J., Vroonhof, P., Verhoeven, W., Timmermans, N., Kwaak, T., Snijders, J., & Westhof, F. (2011). Do SMEs create more and better jobs?. Report of EIM Business & Policy Research, November 2011, Brussels. Retrieved from https://ec.europa.eu/growth/sites/growth/files/docs/body/do-smes-create-more-and-better-jobs_en.pdfSearch in Google Scholar

Djankov, S., & Hoekman, B. (2000). Foreign investment and productivity growth in Czech enterprises. World Bank Economic Review, 14(1), 49-64. Retrieved from http://elibrary.worldbank.org/doi/pdf/10.1093/wber/14.1.49Search in Google Scholar

Druică E., Goschin, Z., & Grigore, A.-M. (2017). Regional interplay of factors informing SMEs density in Romania. A panel data analysis. Eastern Journal of European Studies, 7(1) (forthcoming).Search in Google Scholar

Elhorst, J.P. (2010). Spatial panel data models. In: Fischer M.M. & Getis A. (eds) Handbook of applied spatial analysis (377–407). Berlin: Springer.Search in Google Scholar

Ferreira, J. J., Fayolle, A., Fernandes, C., & Raposo, M. (2017). Effects of Schumpeterian and Kirznerian entrepreneurship on economic growth: panel data evidence. Entrepreneurship & Regional Development, 29(1-2), 27-50. http://dx.doi.org/10.1080/08985626.2016.1255431Search in Google Scholar

Forsman, H. (2011). Innovation Capacity and Innovation Development in Small Enterprises. A Comparison between the Manufacturing and Service Sectors. Research Policy, 40, 739–750. https://doi.org/10.1016/j.respol.2011.02.003Search in Google Scholar

Gaygisiz, E., & Kokasal, M. (2003). Regional Variation in New Firm Formation in Turkey: Cross-Section and Panel Data Evidence (ERC Working Papers 0308). Economic Research Center (ERC), Middle East Technical University, Turkey. Retrieved from http://www.erc.metu.edu.tr/menu/series03/0308.pdfSearch in Google Scholar

Global Entrepreneurship Monitor. (2014). 2014 Global Report. Retrieved from http://www.gemconsortium.org/report/49079Search in Google Scholar

Gleave, W., & Mitra, J. (2010). The spatial determinants of entrepreneurship in the regions of England, 2000-2004. International Journal of Entrepreneurship and Small Business, 9(2), 143-161. https://doi.org/10.1504/IJESB.2010.030617Search in Google Scholar

Goschin, Z., Grigore, A. M. & Druică, E. (2017). Exploring SMEs Distribution in Romania. A Spatial Clustering Perspective. Management Strategies, 1(34), 683-693. Retrieved from http://www.strategiimanageriale.ro/images/images_site/categorii_articole/pdf_categorie_7cc1cc724584196d6488870de82cf102.pdfSearch in Google Scholar

Grebel, Th. (2004). Entrepreneurship. New York: Routledge.Search in Google Scholar

Grigore, A.-M. (2006). Human resource management in small enterprises (in Romanian). Bucharest: Olimp Publishing House.Search in Google Scholar

Imbrişcă, C. (2016, November). A study on direct foreign investments and their impact on the host country. Paper presented at The 1st Workshop on Applied R for the Social Sciences, Bucharest. Abstract retrieved from http://annalseas.faa.ro/ro/articol/A-STUDY-ON-DIRECT-FOREIGN-INVESTMENTS-AND-THEIR-IMPACT-ON-THE-HOST-COUNTRY~251.htmlSearch in Google Scholar

Kalenkoski, C.M., & Lacombe, D.J. (2013). Minimum Wages and Teen Employment: A Spatial Panel Approach. Papers in Regional Science, 92, 407-417. Doi:10.1111/j.1435-5957.2012.00453.xSearch in Google Scholar

Kangasharju, A. (2000). Regional variations in firm formation: Panel and cross section data evidence from Finland. Papers in Regional Science, 79, 355-373. DOI: 10.1111/j.1435-5597.2000.tb01762.xSearch in Google Scholar

Klonowski, D. (2012). Innovation propensity of the SME sector in emerging markets: evidence from Poland, Post-Communist Economies, 24, 133-143. http://dx.doi.org/10.1080/14631377.2012.647633Search in Google Scholar

Kriščiūnas, K., & Greblikaitė, J. (2007). Entrepreneurship in Sustainable Development: SMEs Innovativeness in Lithuania. Inzinerine Ekonomika-Engineering Economics, 4 (54), 20-26. Retrieved from http://inzeko.ktu.lt/index.php/EE/article/view/12250/6816Search in Google Scholar

Lekovic, B., Maric, S., & Lekovic, B. (2014). Characteristics of Entrepreneurial Activities in Transitional Countries and Their Influence on Development. Inzinerine Ekonomika-Engineering Economics, 25(1), 62–71. http://dx.doi.org/10.5755/j01.ee.25.1.2885Search in Google Scholar

LeSage, J.P., & Pace, R.K. (2009). Introduction to spatial econometrics. CRC Press, Boca Raton, FL.Search in Google Scholar

Malecki, E. (2009). Geographical environments for entrepreneurship. International Journal of Entrepreneurship and Small Business, 7(2), 175-190. https://doi.org/10.1504/IJESB.2009.022805Search in Google Scholar

McCann, P., & Ortega-Argiles, R. (2015). Smart specialization, regional growth and applications to EU cohesion policy. Regional Studies, 49, 1291–1302. http://dx.doi.org/10.1080/00343404.2013.799769Search in Google Scholar

McCann, P., Ortega-Argiles, R. (2016). Smart specialisation, entrepreneurship and SMEs: issues and challenges for a results-oriented EU regional policy. Small Business Economics, 46, 537–552. Doi:10.1007/s11187-016-9707-zSearch in Google Scholar

Mencinger, J. (2003). Does foreign direct investment always enhance economic growth?. Kyklos, 56, 491-508. DOI: 10.1046/j.0023-5962.2003.00235.xSearch in Google Scholar

Millo, G., & Piras, G. (2012). splm: Spatial Panel Data Models in R. Journal of Statistical Software, 47(1), 1–38. Retrieved from https://www.jstatsoft.org/article/view/v047i01/v47i01.pdfSearch in Google Scholar

Mueller, P. (2006). Entrepreneurship in the region: breeding ground for nascent entrepreneurs?. Small Business Economics, 27(1), 41-58. DOI: 10.1007/s11187-006-6951-7Search in Google Scholar

Poschke, M. (2013) Entrepreneurs out of necessity: a snapshot, Applied Economics Letters, 20, 658–663, http://dx.doi.org/10.1080/13504851.2012.727968.Search in Google Scholar

Pijnenburg, K. & Kholodilin, K. (2012) Do regions with entrepreneurial neighbours perform better? A spatial econometric approach for German regions. Regional Studies, 48, 5, 866-882, doi:10.1080/00343404.2012.697143.Search in Google Scholar

Reynolds, P. D., Miller, B., & Maki, W. R. (1995). Explaining Regional Variation in Business Births and Deaths - US 1976-88. Small Business Economics, 7, 389-407. DOI: 10.1007/BF01302739Search in Google Scholar

Ross, A.G., Adams, J., & Crossan, K. (2015). Entrepreneurship and the spatial context: A panel data study into regional determinants of small growing firms in Scotland. Local Economy, 30, 672 – 688. Retrieved from http://journals.sagepub.com/doi/pdf/10.1177/0269094215600135Search in Google Scholar

Schutjens, A., & Wever, E. (2000). Determinants of New Firm Success. Papers in Regional Science, 79(2), 135-159. DOI: 10.1111/j.1435-5597.2000.tb00765.xSearch in Google Scholar

Simmons, J.P., LeBoeuf, R.A., & Nelson, L.D. (2010). The effect of accuracy motivation on anchoring and adjustment: Do people adjust from provided anchors?. Journal of Personality and Social Psychology, 99, 917–932. Doi:10.1037/a0021540Search in Google Scholar

Stefanescu, D., & On, A. (2012). Entrepreneurship and Sustainable Development in European Countries before and during the International Crisis, Procedia - Social and Behavioral Sciences, 58, 889-898. https://doi.org/10.1016/j.sbspro.2012.09.1067Search in Google Scholar

Simon, H. (1978). Rationality as Process and as Product of Thought. American Economic Review, 68, 2, 1-16. Retrieved from http://EconPapers.repec.org/RePEc:aea:aecrev:v:68:y:1978:i:2:p:1-16Search in Google Scholar

Sternberg, R. (2011a). Interregional Disparities, Entrepreneurship, and EU Regional Policy. In: Minniti, M. (Ed.): The Dynamics of Entrepreneurship. Evidence from the Global Entrepreneurship Monitor Data (153-180). Oxford, New York: Oxford University Press.Search in Google Scholar

Sternberg, R. (2011b). Necessity Entrepreneurship: From Unemployment to Self-employment. In: Federal Ministry of Labour and Social Affairs: From Unemployment to self-employment: Facilitating Transition in the Recovery (15-26). Berlin: FMLSA.Search in Google Scholar

Strack, F., & Mussweiler, T. (1997). Explaining the enigmatic anchoring effect: Mechanisms of selective accessibility. Journal of Personality and Social Psychology. 73: 437–446. Doi:10.1037/0022-3514.73.3.437Search in Google Scholar

Szabo, Z. K. (2011).The impact of the crisis on the SME sector in Romania - The back-up of innovation and entrepreneurship development. Romanian Journal of Economics, 32(2), 90-108. Retrieved from http://www.revecon.ro/articles/2011-2/2011-2-5.pdfSearch in Google Scholar

Szymanski, A., Gorton, M. & Hubbard, L. (2007). A comparative analysis of firm performance in post-socialist economies: evidence from the Polish food processing industry. Post-communist economies, 19, 433–448. http://dx.doi.org/10.1080/14631370701680113Search in Google Scholar

Tamasy, C. (2006). Determinants of Regional Entrepreneurship Dynamics in Contemporary Germany: A Conceptual and Empirical Analysis. Regional Studies, 40, 365-384. http://dx.doi.org/10.1080/00343400600612137Search in Google Scholar

Tamasy, C. & Le Heron, R. (2008). The geography of firm formation in New Zealand. Tijdschrift Voor Economische En Sociale Geografie, 99(1), 37-52. DOI: 10.1111/j.1467-9663.2008.00438.xSearch in Google Scholar

Thurik, A. R., & Wennekers, S. (1999). Linking Entrepreneurship and Economic Growth. Small Business Economics, 13, 27-55. Doi:10.1023/A:1008063200484Search in Google Scholar

Trapletti A., Hornik, K. & LeBaron, B. (2017). Time series analysis and computational finance, CRAN Repository. Retrieved April 25, 2017 from https://cran.r-project.org/web/packages/tseries/tseries.pdfSearch in Google Scholar

Tudor L., & Bisa, C. (2016). The Effects of the Economic Recession on Romanian Entrepreneurship: A Change Management Perspective. Journal of Entrepreneurship: Research & Practice, vol. 2016. Doi: 10.5171/2016.252779.Search in Google Scholar

Tversky A., & Kahneman, D. (1983a). Judgment under uncertainty: Heuristics and Biases, Journal of Marketing Research, 20(2), 3-20. Doi: 10.2307/3151689Search in Google Scholar

Tversky, A. & Kahneman, D., (1983b). Extensional versus intuitive reasoning: The conjunction fallacy in probability judgment. Psychological Review, 90, 293–315. doi:10.1037/0033-295X.90.4.293Search in Google Scholar

Xu, B. (2000). Multinational enterprises, technology diffusion, and host country productivity growth. Journal of Development Economics, 62, 477-493. https://doi.org/10.1016/S0304-3878(00)00093-6Search in Google Scholar

Zaman, Gh., & Goschin, Z. (2015). Economic Downfall and Speed of Recovery in Romanian Counties. A Spatial Autoregressive Model, Journal of Economic Computation and Economic Cybernetics Studies and Research, 49(3), 21-40. Retrieved from http://www.ecocyb.ase.ro/nr20153/02%20-%20Zaman%20Gheorghe,%20Zizi%20Goskin%28T%29.pdfSearch in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo