Skip to main content

ETHNOS_APP

Home • Search • Journals • List 0

Municipal budget strategies and local economic growth

Bibliographic Data

ID10409504
AuthorsDave Kiwi (0000-0002-1966-5972, Vrije Universiteit Amsterdam, corresponding author), Andreas Alexiou (0000-0002-8425-0132, University of Southampton)
Year2026
Volume60
Issue1
Publication date2026-02-09
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueRegional Studies (JOURNAL)
Journal identifiersISSN: 0034-3404 • E-ISSN: 1360-0591
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/00343404.2025.2600432
OpenAlexW7124509201
LanguageEN
References cited97

Local governments invest heavily in economic development, yet such spending often fails to produce entrepreneurial dynamism. This study examines how different configurations of municipal spending contribute to new firm formation across 336 Dutch municipalities. Using fuzzy-set Qualitative Comparative Analysis, we identify multiple, size-specific combinations of foundational infrastructure and business-climate interventions that are sufficient for higher entrepreneurial activity. The results show that the effectiveness of municipal spending depends on its alignment with local fiscal and institutional capacity, rather than on the presence of any single policy lever. We conceptualise this as a capacity logic of public investment, whereby different capacity regimes enable different causal pathways to entrepreneurship. The findings reframe local development from a search for universally effective instruments to the design of capacity-contingent policy bundles, offering an alternative basis for both theorising and governing subnational economic growth

Cognitive reframing · Fiscal policy · Local economic development · Local government · Public policy · Public spending · Public Policy and Administration Research · Qualitative Comparative Analysis Research · Regional Development and Policy

  • Redesigning Social Inquiry

    C C Ragin•Redesigning Social Inquiry•2008

  • The Relational Organization of Entrepreneurial Ecosystems

    Open Access•Ben Spigel•Entrepreneurship Theory and…•2017

  • Entrepreneurship and economic development in cities

    Open Access•David B Audretsch, Maksim Belitski et al.•The Annals of Regional Science•2015

  • Strategic assets and organizational rent

    Open Access•Rea Amit, Raphael Amit et al.•Strategic Management Journal•1993

  • A critical review of entrepreneurial ecosystems research

    Janna Alvedalen, Ron Boschma•European Planning Studies•2017

  • The dynamic resource‐based view

    Open Access•Constance E Helfat, Margaret A Peteraf•Strategic Management Journal•2003

  • The Effects of Local Government Amalgamation on Public Spending, Taxation, and Service Levels

    Open Access•Maarten Allers, Maarten A Allers et al.•Journal of Regional Science•2016

  • Entrepreneurial Ecosystems and Regional Policy

    Emlyn Stam•European Planning Studies•2015

  • Regional Innovation Systems, Clusters, and the Knowledge Economy

    P Cooke•Industrial and Corporate Change•2001

  • Institutions and Entrepreneurship Quality

    Open Access•Farzana Chowdhury, David B Audretsch et al.•Entrepreneurship Theory and…•2019

  • Conditions for innovation in public sector organizations

    Open Access•Mehmet Akif Demircioğlu, David B Audretsch•Research Policy•2017

  • Firm Resources and Sustained Competitive Advantage

    Open Access•Jay B Barney, Jay Barney•Journal of Management•1991

  • The new era leadership for the public sector? Entrepreneurship, effectiveness, and democracy

    Roberto Vivona•Public Management Review•2024

  • Strategic cost-shifting in long-term care. Evidence from the Netherlands

    Open Access•Peter Alders, Erik Schut•Health Policy•2022

  • Tourism, Local Economic Development and Inclusion

    Open Access•C M Rogerson, Jayne M Rogerson•GeoJournal of Tourism and Geosites•2019

  • Studying configurations with qualitative comparative analysis

    Open Access•Thomas Greckhamer, Santi Furnari et al.•Strategic Organization•2018

  • Fast Policy

    J Peck, Nik Theodore•Fast Policy•2015

  • Set-Theoretic Methods for the Social Sciences

    Open Access•Carsten Q Schneider, Claudius Wagemann•Set-Theoretic Methods for the…•2012

  • Necessity or opportunity? Government size, tax policy, corruption, and implications for entrepreneurship

    Open Access•David B Audretsch, Maksim Belitski et al.•Small Business Economics•2022

  • Entrepreneurship, economic development and institutions

    Open Access•Zoltan J Acs, Sameeksha Desai et al.•Small Business Economics•2008

  • The impact of new firm formation on regional development in the Netherlands

    Open Access•André van Stel, Kashifa Suddle•Small Business Economics•2008

  • How does new business formation affect regional development? Introduction to the special issue

    Open Access•Michael Fritsch, Michael Fritsch Michael Fritsch•Small Business Economics•2008

  • EU regional development policy and territorial capital

    Open Access•Ugo Fratesi, Giovanni Perucca•Papers of the Regional Science…•2018

  • Firm relocation decisions in The Netherlands

    Open Access•Jouke Van Dijk, Piet H Pellenbarg et al.•Papers of the Regional Science…•2000

  • Transport investment and the promotion of economic growth

    Open Access•David Banister, Yossi Berechman•Journal of Transport Geography•2001

  • The importance of socio-economic and political losses and gains in welfare state reform

    Open Access•Barbara Vis•Journal of European Social Policy•2009

  • A Quasi-Market Framework for Development Competition

    Richard Feiock•Journal of Urban Affairs•2002

  • Broadband and local growth

    Open Access•Jed Kolko•Journal of Urban Economics•2012

  • Transformative city branding and the evolution of the entrepreneurial city

    Open Access•Salla Jokela•Urban Studies•2020

  • Related Variety, Unrelated Variety and Regional Economic Growth

    Koen Frenken, Frank Van Oort et al.•Regional Studies•2007

  • Towards an Evolutionary Perspective on Regional Resilience

    Ron Boschma•Regional Studies•2014

  • Entrepreneurship in a Regional Context

    Michael Fritsch, David Storey et al.•Regional Studies•2014

  • Impact of European Cohesion Policy on regional growth

    Marco Percoco•Regional Studies•2016

  • Regional Innovation Systems

    Bjørn Asheim, Bjørn T Asheim et al.•Regional Studies•2011

  • Exploring the mechanisms of platform empowered cluster development

    Han Chu, Robert Hassink et al.•Regional Studies•2024

  • The Determinants of Regional Variation in New Firm Formation

    Catherine Armington, Zoltan J Acs•Regional Studies•2002

  • New Firm Formation and Regional Development

    Gioacchino Garofoli•Regional Studies•1994

  • Network Linkages and Local Embeddedness of Foreign Ventures in China

    Y D Wei, Y H Dennis Wei•Regional Studies•2013

  • Cultural Districts, A New Strategy for Regional Development? The South-East Cultural District in Sicily

    Antoine Le Blanc•Regional Studies•2010

  • New Firm Formation and Regional Development in Sweden

    Per Davidsson, Leif Lindmark et al.•Regional Studies•1994

  • Towards an entrepreneurial ecosystem typology for regional economic development

    David B Audretsch, Maksim Belitski•Regional Studies•2021

  • Cluster presence and economic performance

    Open Access•Christian Ketels, Sergiy Protsiv•Regional Studies•2020

  • Do Institutions Matter for Regional Development

    Andrés Rodríguez-Pose•Regional Studies•2013

  • Formation of Foreign Direct Investment Clustering–A New Path to Local Economic Development? The Case of Qingdao

    Jun Yeup Kim, Le-Yin Zhang•Regional Studies•2008

  • The Great Unraveling

    Open Access•Irene S Rubin, Irene Rubin•Public Administration Review•2007

  • Past and Future Budget Classics

    Open Access•Irene S Rubin, Irene Rubin•Public Administration Review•2014

  • The Financial Crisis of the Local Authorities in Israel

    Open Access•Abraham Carmeli, A Cohen•Public Administration•2001

  • Government Spending in a Simple Model of Endogeneous Growth

    Robert J Barros, Robert J Barro•Journal of Political Economy•1990

  • Endogenous Technological Change

    Paul M Romer, Paul Romer•Journal of Political Economy•1990

  • The role of place branding in local and regional economic development

    Open Access•Evan Cleave, Godwin Arku et al.•Regional Studies Regional Science•2016

  • Elements of Strategic Planning and Management in Municipal Government

    Open Access•Theodore H Poister, Gregory Streib•Public Administration Review•2005

  • Budget Process Reform

    Open Access•Paul L Posner•Public Administration Review•2009

  • Does Performance Budgeting Work? An Examination of the Office of Management and Budget’s Part Scores

    Open Access•John B Gilmour, David E Lewis•Public Administration Review•2006

  • Understanding the Adoption and Timing of Economic Development Strategies in US Cities Using Innovation and Institutional Analysis

    Minkyung Kwon, Frances Stokes Berry et al.•Journal of Public Administration…•2009

  • What Do We Talk About When We Talk About Performance? Dialogue Theory and Performance Budgeting

    Donald P Moynihan•Journal of Public Administration…•2006

  • Form of Government, Administrative Organization, and Local Economic Development Policy

    Richard Feiock, R C Feiock et al.•Journal of Public Administration…•2001

  • Performance Information, Blame Avoidance, and Politicians' Attitudes to Spending and Reform

    Poul Aaes Nielsen, Martin Baekgaard•Journal of Public Administration…•2015

  • Predicting Budgetary Change

    Open Access•Carla M Flink, Carla Flink•Journal of Public Administration…•2019

  • The Myth of Mayoral Leadership in Local Government Resource Allocation

    Open Access•Ralph C Gomes, Ricardo C Gomes et al.•Journal of Public Administration…•2022

  • Learning from Abroad

    Open Access•David P Dolowitz, D Marsh•Governance•2000

  • Still Lost in Translation! A Correction of Three Misunderstandings Between Configurational Comparativists and Regressional Analysts

    Open Access•Alrik Thiem, Michael Baumgartner et al.•Comparative Political Studies•2016

  • The regional distribution and correlates of an entrepreneurship-prone personality profile in the United States, Germany, and the United Kingdom

    Martin Obschonka, Eva Schmitt-Rodermund et al.•Journal of Personality and Social…•2013

  • Assessing and explaining the relative efficiency of local government

    Open Access•António Afonso, Sônia Fernandes•The Journal of Socio-Economics•2007

  • The role of heritage conservation districts in achieving community economic development goals

    Robert Shipley, Marcie Snyder•International Journal of Heritage…•2013

  • Innovation, Innovation Policies, and Regional Development in China

    Open Access•Dandan Li, Y D Wei et al.•Geographical Review•2020

  • Externalities, Learning and Governance

    Open Access•Bert Helmsing•Development and Change•2001

Citation velocityhistorical
Highly citedNo

Tools

Open DOI
Ethnos_APP • Open Source Project • MIT License • Frontend v2.0.0 • Privacy and Cookies • API Documentation: api.ethnos.app/docs • API Source Code: GitHub • DOI: 10.5281/zenodo.17049435 • Frontend Source Code: GitHub • DOI: 10.5281/zenodo.17050053 • cruz.rio.br • Expectantes Misericordiae