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Microenterprises and economic growth: a panel study of the US states 1977-1997

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  • Steven Deller
  • James McConnon

Abstract

In this study, we examine the role of microenterprises in US economic growth. Using a panel of the 48 lower US states from 1977 to 1997, we estimate an expanded Carlino-Mills type model of growth. Microenterprises are defined as having between one and four employees. Results suggest that a higher share of goods producing firms that are microenterprises tend to be associated with lower levels of population, employment and income growth, while a higher share of service producing firms classified as micro are associated with higher levels of growth. These results suggest that care must be taken when promoting microenterprises as a major engine of economic growth.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 16 (2009)
Issue (Month): 13 ()
Pages: 1307-1312

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Handle: RePEc:taf:apeclt:v:16:y:2009:i:13:p:1307-1312

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Cited by:
  1. Goetz, Stephan J. & Fleming, David A. & Rupasingha, Anil, 2012. "The Economic Impacts of Self-Employment," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(03), August.
  2. Viggo Jean-Hansen, 2011. "Is economic growth in cities crowding out freight handling and transport?," ERSA conference papers ersa10p1615, European Regional Science Association.
  3. Goetz, Stephan J. & Partridge, Mark D. & Deller, Steven C. & Fleming, David A., 2010. "Evaluating U.S. Rural Entrepreneurship Policy," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(1).
  4. Deller, Steven C., 2007. "The Role of Microenterprises in Economic Growth: A Panel Study of Wisconsin Counties 1977 to 1997," Staff Paper Series 514, University of Wisconsin, Agricultural and Applied Economics.
  5. 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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