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Export Orientation among New Ventures and Economic Growth

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  • André van Stel
  • Jolanda Hessels

Abstract

While it is generally acknowledged that entrepreneurship as well as export activity may both be important strategies for achieving national economic growth, it has remained unclear how export activity among new ventures is related to economic growth. This paper investigates whether the presence of export-oriented entrepreneurs is a more important determinant of economic growth than entrepreneurial activity in general. We focus on the national or macro-level and use data from the Global Entrepreneurship Monitor for a sample of 36 countries. An important advantage of using the macrolevel is that indirect effects of exporting entrepreneurs that reach further than the performance of these firms themselves (e.g. spillovers) are captured in the analysis. To our knowledge, no attempt has been made thus far to link international activity of early-stage ventures to macro-economic outcomes. Our results suggest that export-oriented entrepreneurship is indeed more important for achieving high economic growth rates than entrepreneurial activity in general. This suggests that international activity by small and new firms strongly contributes to higher levels of competition and, consequently, to the emergence of highly dynamic economies and higher levels of economic growth.

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Bibliographic Info

Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200626.

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Length: 22 pages
Date of creation: 20 Dec 2006
Date of revision:
Handle: RePEc:eim:papers:h200626

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  1. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
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Cited by:
  1. Jolanda Hessels, 2008. "International Entrepreneurship: An Introduction, Framework and Research Agenda," Scales Research Reports H200823, EIM Business and Policy Research.
  2. Tsui-Yii Shih & Rumintha Wickramasekera, 2011. "Export decisions within Taiwanese electrical and electronic SMEs: The role of management characteristics and attitudes," Asia Pacific Journal of Management, Springer, vol. 28(2), pages 353-377, June.

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