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The Role of Export-Driven New Ventures in Economic Growth: A Cross-Country Analysis

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Author Info
André van Stel
Jolanda Hessels

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Abstract

We investigate the relationship between a country’s prevalence of new ventures and its rate of economic growth, while distinguishing between export-oriented new ventures and domestic new ventures. It is generally acknowledged that new venture creation as well as export activity may both be important strategies for achieving national economic growth. However, to our knowledge no attempt has been made to empirically investigate the role of export-driven new ventures in economic growth. We focus on the national level and use data from the Global Entrepreneurship Monitor for a sample of 36 countries. Our results suggest that a country’s prevalence of export-driven new ventures is significantly positively related to economic growth, whereas the prevalence of new ventures that focus exclusively on domestic market sales shows no significant relation to national growth.

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Publisher Info
Paper provided by EIM Business and Policy Research in its series Scales Research Reports with number H200721.

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Length: 27 pages
Date of creation: 21 Dec 2007
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Handle: RePEc:eim:papers:h200721

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