Abstract
This article seeks to examine spatially varying relationships between new firm formation and employment growth across U.S. counties. The existing empirical evidence does not provide consistent conclusions of the effect of new business formation on employment growth. The regional effects of new firm formation on employment growth are examined and emphasized in this article. It is hypothesized and tested that there are different relationships between new firm formation and employment growth across metropolitan and nonmetropolitan counties. Geographically weighted regression model is calibrated with county-level data to identify the spatially varying relationships across metropolitan and nonmetropolitan counties.
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