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Entrepreneurship and unemployment: A nonlinear bidirectional causality?

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  • Faria, João Ricardo
  • Cuestas, Juan Carlos
  • Mourelle, Estefanía

Abstract

This paper tests the view that the relation between unemployment and entrepreneurship is dynamic and possibly nonlinear. It performs Granger-causality tests and STAR-EXT estimation to assess the causality direction and the nonlinear nature of the relation for a set of OECD countries. The results reveal a bidirectional and nonlinear relation between business creation and changes in unemployment.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 27 (2010)
Issue (Month): 5 (September)
Pages: 1282-1291

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Handle: RePEc:eee:ecmode:v:27:y:2010:i:5:p:1282-1291

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Web page: http://www.elsevier.com/locate/inca/30411

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Keywords: New firms Employment creation Causality Nonlinearities STAR-EXT;

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References

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  27. repec:dgr:uvatin:0000032 is not listed on IDEAS
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Cited by:
  1. Sipos-Gug Sebastian & Badulescu Alina-Daciana, 2013. "Entrepreneurial Activity In Romania - A Time Series Clustering Analysis At The Nuts3 Level," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 673-682, July.
  2. Gohmann, Stephan F. & Fernandez, Jose M., 2014. "Proprietorship and unemployment in the United States," Journal of Business Venturing, Elsevier, vol. 29(2), pages 289-309.
  3. Faria, João Ricardo & Cuestas, Juan Carlos & Gil-Alana, Luis A., 2009. "Unemployment and entrepreneurship: A cyclical relation?," Economics Letters, Elsevier, vol. 105(3), pages 318-320, December.

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