Agglomeration Economies and Their Effect on the Location of New Ventures

The main purpose of this paper is to examine the influence of agglomeration economies on the choice of location for new companies. Based on previous findings and existing literature, it is assumed that there is motivation for further examination of the relationship between localization/urbanization economies and new firms. In the empirical analysis the four biggest in terms of GDP and population regions in Netherlands are considered over the period 2011-2014. The results suggest that localization has a positive and significant effect, while urbanization has a negative and insignificant effect on new ventures.