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An Analysis Of The Relationship Between New Firm Formation And Economic Development In The Northeast Region Of The United States

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  • SAIMA BASHIR

    (Division of Resource Management, 2040, Agricultural Sciences Building, P. O. Box 6108, West Virginia University, Morgantown, WV 26506-6108, USA)

  • TESFA GEBREMEDHIN

    (Division of Resource Management, 2040, Agricultural Sciences Building, P. O. Box 6108, West Virginia University, Morgantown, WV 26506-6108, USA)

Abstract

The overall objective of this study is to provide policy makers identifies and estimates the role and impacts of new firm formation in the Northeast region of the United States. The empirical model of this study is derived from the three-equation simultaneous model of Deller et al. (2001). In this study, Three-Stage Least Squares (3SLS) method is used to estimate the simultaneous equations model. The research findings indicate that population density and per capita income have a positive link with new firm formation. Higher population density and per capita income encourage entrepreneurs to start new firms in the region. This leads to an increase of new jobs, which is a positive contribution to economic development in the Northeast region.

Suggested Citation

  • Saima Bashir & Tesfa Gebremedhin, 2011. "An Analysis Of The Relationship Between New Firm Formation And Economic Development In The Northeast Region Of The United States," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 289-306.
    • Handle: RePEc:wsi:jdexxx:v:16:y:2011:i:03:n:s1084946711001859
    DOI: 10.1142/S1084946711001859
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    References listed on IDEAS

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    1. Zoltan J. Acs & Catherine Armington, 2008. "Employment Growth and Entrepreneurial Activity in Cities," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 25, pages 353-369, Edward Elgar Publishing.
    2. Jaan Masso & Raul Eamets & Kaia Philips, 2004. "Job creation and job destruction in Estonia: labour reallocation and structural changes," UCL SSEES Economics and Business working paper series 39, UCL School of Slavonic and East European Studies (SSEES).
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    Cited by:

    1. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.

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