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The relationship between entrepreneurial activity and domestic gross state in-migration patterns in the U.S

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  • Richard J. Cebula
  • Malissa L. Davis
  • James V. Koch
  • James William Saunoris

Abstract

Using the Kauffman indices of entrepreneurial activity, which effectively have been entirely overlooked in the domestic migration literature to date, this study seeks to investigate the relationship between entrepreneurial activity and domestic gross in-migration in the U.S. and whether that relationship is bi-directional. The two-part hypothesis being investigated here is that: (a) greater entrepreneurial activity in a state leads to a greater domestic gross in-migration rate, ceteris paribus, and (b) a greater domestic gross in-migration rate induces an increase in entrepreneurial activity, ceteris paribus. After including a number of control variables, luding geographic cost-of-living differentials and an index of aggregate labour market freedom, the most germane of the empirical findings obtained here, based on panel VAR estimation and Granger causality tests, is that the gross state-level in-migration rate in the U.S. has positively impacted the level of entrepreneurial activity. However, there is no compelling evidence that entrepreneurial activity influenced state-level gross in-migration. These results for domestic migration appear to be compatible with previous studies of international immigration to the U.S. and entrepreneurship.

Suggested Citation

  • Richard J. Cebula & Malissa L. Davis & James V. Koch & James William Saunoris, 2020. "The relationship between entrepreneurial activity and domestic gross state in-migration patterns in the U.S," Applied Economics, Taylor & Francis Journals, vol. 52(41), pages 4542-4556, September.
    • Handle: RePEc:taf:applec:v:52:y:2020:i:41:p:4542-4556
    DOI: 10.1080/00036846.2020.1737314
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    Cited by:

    1. Travis Wiseman, 2021. "Immigration and Baumolian Entrepreneurship in the United States," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 36(Fall 2021), pages 1-26.
    2. Wang, Mengmeng & Zhou, Tao, 2022. "Understanding the dynamic relationship between smart city implementation and urban sustainability," Technology in Society, Elsevier, vol. 70(C).
    3. Charfeddine, Lanouar & Zaouali, Sana, 2022. "The effects of financial inclusion and the business environment in spurring the creation of early-stage firms and supporting established firms," Journal of Business Research, Elsevier, vol. 143(C), pages 1-15.
    4. Douglas S. Noonan & Shiri M. Breznitz & Sana Maqbool, 2021. "Flocking to the crowd: Cultural entrepreneur mobility guided by homophily, market size, or amenities?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 45(4), pages 577-611, December.

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