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On the Duration of Self-Employment: The Impact of Macroeconomic Conditions

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  • M. Nziramasanga
  • M. Lee

Abstract

The article examines the role of lending rates, imports and growth on the duration of self-employment in Zimbabwe while the country embarked on trade liberalisation. The variables were selected because of their importance as policy variables in reform programmes and also their importance to small entrepreneurs. Previous research has established the importance of an initial endowment and other measures of human capital on entry into self-employment as well as growth of the respective enterprises. We show that such initial conditions do not always give robust results. Instead, duration of self-employment is negatively related to higher lending rates, increased imports and structural change, but responds positively to growth.

Suggested Citation

  • M. Nziramasanga & M. Lee, 2002. "On the Duration of Self-Employment: The Impact of Macroeconomic Conditions," Journal of Development Studies, Taylor & Francis Journals, vol. 39(1), pages 46-73.
    • Handle: RePEc:taf:jdevst:v:39:y:2002:i:1:p:46-73
    DOI: 10.1080/00220380412331322661
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    Citations

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    Cited by:

    1. Paz Rico Belda & Bernardí Cabrer-Borrás, 2018. "Necessity and opportunity entrepreneurs: survival factors," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 249-264, June.
    2. José María Millán & Emilio Congregado & Concepción Román, 2010. "Determinants of Self-Employment Dynamics and their Implications on Entrepreneurial Policy Effectiveness," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 72, pages 45-76.
    3. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2003. "Entrepreneurship Selection and Performance," Tinbergen Institute Discussion Papers 03-046/3, Tinbergen Institute, revised 24 Sep 2004.
    4. Remeikiene Rita, 2015. "Evaluation of Self-Employment Development Factors: Latvian Case," Economics and Business, Sciendo, vol. 27(1), pages 5-11, August.
    5. José Millán & Emilio Congregado & Concepción Román, 2012. "Determinants of self-employment survival in Europe," Small Business Economics, Springer, vol. 38(2), pages 231-258, February.
    6. Bernardí Cabrer-Borrás & Paz Rico Belda, 2018. "Survival of entrepreneurship in Spain," Small Business Economics, Springer, vol. 51(1), pages 265-278, June.
    7. Animesh Bhattacharjee & Joy Das, 2021. "Investigating the Effect of Broad Money Supply on Stock Market Index and Market Capitalization: Evidence from Liberalized India," Jindal Journal of Business Research, , vol. 10(2), pages 185-198, December.

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