Spatial Variations in the Role of Microenterprises in Economic Growth
AbstractUsing 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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Bibliographic InfoArticle provided by Southern Regional Science Association in its journal Review of Regional Studies.
Volume (Year): 40 (2010)
Issue (Month): 1 ()
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Policy; Regional; Spatial;
Find related papers by JEL classification:
- L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
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- 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.
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