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Business ownership and sectoral growth

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  • André van Stel
  • Martin Carree

Abstract

In this report we investigated the development of business ownership (self-employment) rates over time at the sectoral level, and the effect these rates have on sectoral output growth. In an earlier exercise, Carree et al. (2002) presented a two-equation model to analyse the interrelationship between economy-wide business-ownership rates and economic development. Their analysis raises an important research question: to what extent do differences in business ownership at the economy-wide level reflect differences in the sectoral structures of economies or differences in business-ownership rates at the sectoral (or even industry) level? The current paper investigates this question making use of a sectoral data base of 21 OECD countries for the period 1970-98. Our estimation results suggest that for our sample of OECD countries there is, on average, a too low business-ownership rate in manufacturing and a too high business-ownership rate in services. The results also show that the results found in Carree et al. (2002) are not solely due to countries differing in sectoral structures.

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Bibliographic Info

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200206.

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Length: 45 pages
Date of creation: 12 Dec 2002
Date of revision:
Handle: RePEc:eim:papers:h200206

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Cited by:
  1. André van Stel & Roy Thurik & Sander Wennekers & Martin Carree, 2010. "The relationship between entrepreneurship and economic development: is it U-shaped?," Scales Research Reports H200824, EIM Business and Policy Research.
  2. Bjuggren, Carl Magnus & Johansson, Dan & Stenkula, Mikael, 2010. "Using Self-employment as Proxy for Entrepreneurship: Some Empirical Caveats," Ratio Working Papers 154, The Ratio Institute.
  3. Audretsch, David B & Thurik, A R Roy, 2000. "Impeded Industrial Restructuring: The Growth Penalty," CEPR Discussion Papers 2648, C.E.P.R. Discussion Papers.
  4. Andre van Stel & Martin Carree & Roy Thurik, 2004. "The effect of entrepreneurship on national economic growth: an analysis using the GEM database," Papers on Entrepreneurship, Growth and Public Policy 2004-34, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
  5. María Callejón & Vicente Ortún, 2009. "The Black Box of Business Dynamics," Working Papers XREAP2009-07, Xarxa de Referència en Economia Aplicada (XREAP), revised Sep 2009.
  6. Niels Noorderhaven & André van Stel & Roy Thurik & Sander Wennekers, 2005. "Uncertainty Avoidance and the Rate of Business Ownership across 22 OECD Countries, 1976-2000," Papers on Entrepreneurship, Growth and Public Policy 2005-15, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.

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