Work

The role of distance and social networks in the geography of crowdfunding: evidence from France

Year: 2019

Type: article

Abstract: This paper estimates the cost of distance in the geographical flow of crowdfunding, and shows how social ties between the 94 French metropolitan regions shape the geography of funding. This analysis draws upon a unique database provided by the French leader in rewards-based crowdfunding. The main result is that the elasticity of distance remains important (around 0.5), and that social ties between regions determine the flow of funding. Doubling the number of immigrants in a region increases the number of investments by 24% and reduces the impact of distance.

Source: Regional Studies

DOI: 10.1080/00343404.2019.1619924

Author: Sylvain Dejean

Institutions: Centre de Recherche et d’Enseignement de Géosciences de l’Environnement, La Rochelle Université

Language: English

Topic: FinTech, Crowdfunding, Digital Finance

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Reduced inequalities, Industry, innovation and infrastructure

Open Access status: green

Funder: Agence Nationale de la Recherche