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Spatial Variations in the Role of Microenterprises in Economic Growth

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  • Deller, Steven C.

    (University of Wisconsin-Madison)

Abstract

Using U.S. county data from 1990 and 2000, a family of spatial models examining growth in population and employment are reported. Special attention is paid to the role of microenterprises--firms with less than five employees--in predicting economic growth. Results suggest that microenterprises play an important but complex role in economic growth. Depending on the industry classification of the microenterprises, and coupled with the metric of growth, there is significant heterogeneity in the policy implications of microenterprises and economic growth. Policy implications are that blanket statements about how small businesses influence growth can be misleading. Spatial heterogeneity in the determinants of economic growth using Geographically Weighted Regression (GWR) is also examined. These results provide strong evidence supporting the idea that there is significant spatial variation and that policies must be crafted to fit specific regional needs.

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File URL: http://journal.srsa.org/ojs/index.php/RRS/article/view/215/170
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Bibliographic Info

Article provided by Southern Regional Science Association in its journal Review of Regional Studies.

Volume (Year): 40 (2010)
Issue (Month): 1 ()
Pages: 71-97

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Handle: RePEc:rre:publsh:v:40:y:2010:i:1:p:71-97

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Web page: http://www.srsa.org

Related research

Keywords: Policy; Regional; Spatial;

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Cited by:
  1. Heather M. Stephens & Mark D. Partridge, 2011. "Do Entrepreneurs Enhance Economic Growth in Lagging Regions?," Growth and Change, Gatton College of Business and Economics, University of Kentucky, vol. 42(4), pages 431-465, December.
  2. Mark Partridge & Rose Olfert, 2011. "The Winners' Choice: Sustainable Economic Strategies for Successful 21st Century Regions," ERSA conference papers ersa11p1655, European Regional Science Association.
  3. Owoo, Nkechi S. & Naudé, Wim, 2014. "Non-Farm Enterprise Productivity and Spatial Autocorrelation in Rural Africa: Evidence from Ethiopia and Nigeria," IZA Discussion Papers 8295, Institute for the Study of Labor (IZA).

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