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A County-Level Assessment of Entrepreneurship and Economic Growth in Appalachia Using Simultaneous Equations

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Author Info

  • Maribel Mojica

    ()
    (Division of Resource Management, West Virginia University)

  • Tesfa Gebremedhin

    ()
    (Division of Resource Management, West Virginia University)

  • Peter Schaeffer

    ()
    (Division of Resource Management, West Virginia University)

Abstract

This study provides evidence of the contribution of entrepreneurship to economic development in Appalachia. Using data on Appalachian counties, a system of simultaneous equations is empirically estimated to measure the effects of entrepreneurship on economic growth and development. We present an expanded Carlino-Mills growth model using changes in population, employment, and per capita income to represent growth. The goal of the investigation is to increase the understanding of entrepreneurship’s contributions to economic growth, and its potential as a development strategy for a region, such as Appalachia, that is characterized by poverty and underdevelopment. The results show that start-up businesses contribute significantly to determining population growth. Employment growth is positively affected by self-employment rates as well as by firm formation rates.

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File URL: http://rri.wvu.edu/wp-content/uploads/2012/11/WP2009-4.pdf
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Bibliographic Info

Paper provided by Regional Research Institute, West Virginia University in its series Working Papers with number 200904.

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Length: 26 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:rri:wpaper:200904

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Related research

Keywords: entrepreneurship; economic development; appalachia; Carlino-Mills growth model;

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  1. Deller, Steven C., 2007. "The Role of Microenterprises in Economic Growth: A Panel Study of Wisconsin Counties 1977 to 1997," Staff Paper Series 514, University of Wisconsin, Agricultural and Applied Economics.
  2. Mills, Edwin S. & Price, Richard, 1984. "Metropolitan suburbanization and central city problems," Journal of Urban Economics, Elsevier, vol. 15(1), pages 1-17, January.
  3. Stephan J. Goetz & David Freshwater, 2001. "State-Level Determinants of Entrepreneurship and a Preliminary Measure of Entrepreneurial Climate," Economic Development Quarterly, , vol. 15(1), pages 58-70, February.
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