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Entrepreneurship, Economic Growth, And Employment : A Case Study Of Taiwan

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  • CHEN, CHIH CHENG

Abstract

In this study, we investigate the relationships among entrepreneurship, economic growth, and employment in Taiwan, by applying the vector autoregression (VAR) model. After estimating the VAR model, using Taiwanʼs quarterly macro data from 1987 to 2012, our estimated results confirm that entrepreneurship can be helpful to economic growth and employment, with 6 periods of lag, respectively. The boom of real GDP can bring the expansion of employment rate immediately and lag-1 period, but not the reverse. In addition, we also find the mutual interaction between the entrepreneurship and employment rate. Therefore, the government should build an environment that stimulates entrepreneurship.

Suggested Citation

  • Chen, Chih Cheng, 2014. "Entrepreneurship, Economic Growth, And Employment : A Case Study Of Taiwan," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 55(1), pages 71-88, June.
    • Handle: RePEc:hit:hitjec:v:55:y:2014:i:1:p:71-88
    DOI: 10.15057/26817
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    Cited by:

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    2. Nurin Asyikin Ahmad & Mohamad Sattar Rasul & Norasmah Othman & Nur Atiqah Jalaludin, 2022. "Generating Entrepreneurial Ideas for Business Development," Sustainability, MDPI, vol. 14(9), pages 1-11, April.
    3. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.

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    More about this item

    Keywords

    entrepreneurship; new company formation; economic growth; employment rate; vector autoregression (VAR);
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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