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Entrepreneurship And Economic Growth In Spanish And Portuguese Regions

  • VAZQUEZ-ROZAS, Emilia
  • GOMES, Sofia
  • VIEIRA, Elvira

This paper seeks to examine the relationship between entrepreneurship and economic growth at a regional level in Spanish and Portuguese NUTS II. Our panel model is based on the idea by Audrestsch et al (2006), Koo and Kim (2009), and other authors, about the importance of adding economically useful local knowledge variables to the classical model of economic growth, that only included labor and capital. Theses variables are: research and development, human capital, entrepreneurship and social capita. We built two different measurements for entrepreneurship : the ratio of companies created over the total in each region for the years of study, and a cross-section measurement that can be considered as an indicator of survival. These measurements do not offer similar results, which shows the importance of achieving a good measure of entrepreneurship, one ideally combining many different aspects. We find a positive effect of the entrepreneurship variable on GDP growth, in per capita terms and in absolute values

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Article provided by Euro-American Association of Economic Development in its journal Regional and Sectoral Economic Studies.

Volume (Year): 10 (2010)
Issue (Month): 2 ()
Pages:

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Handle: RePEc:eaa:eerese:v:10:y2010:i:2_8
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  1. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2008. "Research and development, spillovers, innovation systems, and the genesis of regional growth in Europe," LSE Research Online Documents on Economics 23326, London School of Economics and Political Science, LSE Library.
  2. Andrés Rodríguez-Pose & Riccardo Crescenzi, 2006. "R&D, Spillovers, Innovation Systems and the Genesis of Regional Growth in Europe," Bruges European Economic Research Papers 5, European Economic Studies Department, College of Europe.
  3. GUISAN, Carmen & Neira, Isabel, 2006. "Direct and Indirect Effects of Human Capital on World Development, 1960-2004," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(1), pages 17-34.
  4. Markusen, James R. & Venables, Anthony J., 1999. "Foreign direct investment as a catalyst for industrial development," European Economic Review, Elsevier, vol. 43(2), pages 335-356, February.
  5. André van Stel & Roy Thurik & Sander Wennekers & David Storey, 2006. "From nascent to actual entrepreneurship: the effect of entry barriers," Scales Research Reports N200508, EIM Business and Policy Research.
  6. André van Stel & Roy Thurik & Martin Carree, 2005. "The effect of entrepreneurial activity on national economic growth," Scales Research Reports N200419, EIM Business and Policy Research.
  7. Marcus DEJARDIN, 2001. "Entrepreneurship and Economic Growth: An Obvious Conjunction?," Development and Comp Systems 0110010, EconWPA.
  8. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 961-975.
  9. 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.
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