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

Sylvain Dejean (1)

1 CEREGE [Poitiers, La Rochelle] - Centre de recherche en gestion [EA 1722]

This article aims to estimate the cost of distance in the geographical flow of crowdfunding, and to show how social ties between the 94 French metropolitan regions shape the geography of funding. Our 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.

Mots clés: gravity; Crowdfunding; social networks; economic geography

Domaines: Economies et finances

Sylvain Dejean. The role of distance and social networks in the geography of crowdfunding: evidence from France. 2017. ⟨hal-01645147v1⟩