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Endogenous Growth and Entrepreneurial Activity in Cities

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Author Info
Zoltan J Acs
Catherine Armington

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Abstract

Recent theories of economic growth have stressed the role of externalities in generating growth. Using data from the Census Bureau that tracks all employers in the whole U.S. private sector economy, we examine the impact of these externalities, as measured by entrepreneurial activity, on employment growth in Local Market Areas. We find that differences in levels of entrepreneurial activity, diversity among geographically proximate industries, and the extent of human capital are positively associated with variation in growth rates, but the manufacturing sector appears to be an exception.

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File URL: http://webserver01.ces.census.gov/index.php/ces/1.00/cespapers/index.php/ces/1.00/cespapers?down_key=101665
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Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 03-02.

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Date of creation: Jan 2003
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Handle: RePEc:cen:wpaper:03-02

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Web page: http://www.ces.census.gov

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Keywords: CES economic research micro data microdata chief economist

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. James E. Rauch, 1991. "Productivity Gains From Geographic Concentration of human Capital: Evidence From the Cities," NBER Working Papers 3905, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March. [Downloadable!] (restricted)
    Other versions:
  4. Glaeser, E.L. & Scheinkman, J.A., 1993. "Economic Growth in a Cross-Section of Cities," Harvard Institute of Economic Research Working Papers 1645, Harvard - Institute of Economic Research.
    Other versions:
  5. Carree, Martin & Klomp, Luuk, 1996. " Small Business and Job Creation: A Comment," Small Business Economics, Springer, vol. 8(4), pages 317-22, August.
  6. Edward P. Lazear, 2002. "Entrepreneurship," NBER Working Papers 9109, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Lazear, Edward P., 2003. "Entrepreneurship," IZA Discussion Papers 760, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Zoltan J Acs & Catherine Armington, 1998. "Longitudinal Establishment And Enterprise Microdata (LEEM) Documentation," Working Papers 98-9, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  9. Feldman, Maryann P. & Audretsch, David B., 1999. "Innovation in cities:: Science-based diversity, specialization and localized competition," European Economic Review, Elsevier, vol. 43(2), pages 409-429, February. [Downloadable!] (restricted)
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  10. Dale W. Jorgenson, 2001. "Information Technology and the U.S. Economy," American Economic Review, American Economic Association, vol. 91(1), pages 1-32, March. [Downloadable!] (restricted)
  11. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-52, December. [Downloadable!] (restricted)
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    • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Catherine Armington & Zoltan J. Acs, 2002. "The Determinants of Regional Variation in New Firm Formation," Regional Studies, Taylor and Francis Journals, vol. 36(1), pages 33-45, February. [Downloadable!] (restricted)
  13. Jovanovic, Boyan & Rob, Rafael, 1989. "The Growth and Diffusion of Knowledge," Review of Economic Studies, Blackwell Publishing, vol. 56(4), pages 569-82, October. [Downloadable!] (restricted)
  14. Dale W. Jorgenson, 2001. "Information Technology and the U. S. Economy," Harvard Institute of Economic Research Working Papers 1911, Harvard - Institute of Economic Research. [Downloadable!]
  15. Jovanovic, Boyan, 2001. " New Technology and the Small Firm," Small Business Economics, Springer, vol. 16(1), pages 53-55, February. [Downloadable!] (restricted)
  16. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June. [Downloadable!] (restricted)
    Other versions:
  17. Robert E. Lucas, Jr., 1989. "On the Mechanics of Economic Development," NBER Reprints 1176, National Bureau of Economic Research, Inc.
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  18. Fritsch, Michael, 1997. " New Firms and Regional Employment Change," Small Business Economics, Springer, vol. 9(5), pages 437-48, October. [Downloadable!] (restricted)
  19. Wennekers, Sander & Thurik, Roy, 1999. " Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August. [Downloadable!] (restricted)
  20. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages S71-102, October. [Downloadable!] (restricted)
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  21. Ian Smith & Zoltan J. Acs & Felix R. FitzRoy, 2002. "High-technology employment and R&D in cities: Heterogeneity vs specialization," The Annals of Regional Science, Springer, vol. 36(3), pages 373-386. [Downloadable!] (restricted)
    Other versions:
  22. Geroski, P. A., 1995. "What do we know about entry?," International Journal of Industrial Organization, Elsevier, vol. 13(4), pages 421-440, December. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Maria I. Marshall & Ananya Samal, 2006. "The Effect Of Human And Financial Capital On The Entrepreneurial Process: An Urban-Rural Comparison Of Entrepreneurs In Indiana," Working Papers 06-13, Purdue University, College of Agriculture, Department of Agricultural Economics. [Downloadable!]
  2. Major Clark III & Chad Moutray & Radwan Saade, 2006. "The Government’s Role in Aiding Small Business Federal Subcontracting Programs in the United States," The Office of Advocacy Small Business Working Papers 06mccmrs, U.S. Small Business Administration, Office of Advocacy. [Downloadable!]
  3. Andre van Stel & Bart Diephuis, 2004. "Business dynamics and employment growth: a cross-country analysis," Discussion Papers on Entrepreneurship, Growth and Public Policy 2004-32, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
    Other versions:
  4. Major Clark III, J.D. & Chad Moutray, Ph.D. & chad.moutray@sba.gov & major.clark@sba.gov, 2004. "The Future of Small Businesses in the U.S. Federal Government Marketplace," The Office of Advocacy Small Business Working Papers 04mccm, U.S. Small Business Administration, Office of Advocacy. [Downloadable!]
  5. Michael Fritsch & Pamela Mueller, 2004. "Regional Growth Regimes Revisited - The Case of West Germany," Discussion Papers on Entrepreneurship, Growth and Public Policy 2004-04, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
  6. Andre van Stel & Martin Carree & Roy Thurik, 2004. "The effect of entrepreneurship on national economic growth: an analysis using the GEM database," Discussion Papers on Entrepreneurship, Growth and Public Policy 2004-34, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
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