The impact of entrepreneurship on regional disparities in Romania: A spatial analysis at NUTS3 level

Abstract

Abstract Our study contributes to bridging the empirical gap between regional disparities and entrepreneurship, using a spatial panel framework. Regional disparities in Romania increased after the communist period and even more after the EU accession. Using NUTS3 level data provided by The Romanian National Institute of Statistics, for the period 2008-2018, we investigate the impact of entrepreneurship on regional disparities. We have found new details regarding the link between entrepreneurial activity and inequality. Entrepreneurship matters but, most importantly, it matters differently in developed, emerging and low-income countries. The results suggest that entrepreneurship does not have a significant impact on regional disparities in Romania.