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Export Orientation among New Ventures and Economic Growth

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Author Info
André van Stel
Jolanda Hessels

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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 forachieving 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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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
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Handle: RePEc:eim:papers:h200626

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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. Audretsch, David B & Thurik, A Roy, 2001. "What's New about the New Economy?," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 267-315, March.
  2. Hawkins, Del I., 1993. "New business entrepreneurship in the Japanese economy," Journal of Business Venturing, Elsevier, vol. 8(2), pages 137-150, March. [Downloadable!] (restricted)
  3. S. YOUNG & N. Hood & S. Dunlop, 1988. "Global Strategies, Multinational Subsidiary Roles and Economic Impact in Scotland," Regional Studies, Taylor and Francis Journals, vol. 22(6), pages 487-497, December. [Downloadable!] (restricted)
  4. Andre van Stel & Martin Carree & Roy Thurik, . "The effect of entrepreneurial activity on national economic growth," Discussion Papers on Entrepreneurship, Growth and Public Policy 2005-04, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
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  5. David B. Audretsch & A. Roy Thurik, 2000. "Capitalism and democracy in the 21st Century: from the managed to the entrepreneurial economy," Journal of Evolutionary Economics, Springer, vol. 10(1), pages 17-34. [Downloadable!] (restricted)
  6. David B. Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor and Francis Journals, vol. 36(2), pages 113-124, April. [Downloadable!] (restricted)
  7. Wennekers, Sander & Thurik, Roy, 1999. " Linking Entrepreneurship and Economic Growth," Small Business Economics, Springer, vol. 13(1), pages 27-55, August. [Downloadable!] (restricted)
  8. Sander Wennekers & André van Stel & Roy Thurik & Paul Reynolds, 2005. "Nascent entrepreneurship and the level of economic development," Discussion Papers on Entrepreneurship, Growth and Public Policy 2005-14, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
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  9. McDougall, Patricia Phillips & Oviatt, Benjamin M., 1996. "New venture internationalization, strategic change, and performance: A follow-up study," Journal of Business Venturing, Elsevier, vol. 11(1), pages 23-40, January. [Downloadable!] (restricted)
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  1. Clercq, D. de & Hessels, S.J.A. & Stel, A.J. van, 2007. "Knowledge Spillovers and Entrepreneurs’ Export Orientation," Research Paper ERS-2007-038-ORG Revision, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus Uni. [Downloadable!]
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