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Entrepreneurial Governance and Local Growth

Author

Listed:
  • Amy Rader Olsson

    () (IQ Samhällsbyggnad (The Swedish Centre for Innovation and Quality in the Built Environment), Drottninggatan 33, SE-111 51 Stockholm, Sweden)

  • Hans Westlund

    () (KTH Royal Institute of Technology, Teknikringen 10A, SE-111 44 Stockholm, Sweden
    Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden
    IRSA (Institute for Developmental and Strategic Analyses), Dunajska cesta 113, SI-1000 Ljubljana, Slovenia)

  • Johan P. Larsson

    () (Jönköping International Business School, P.O. Box 1026, SE-551 11 Jönköping, Sweden
    Department of Land Economy, University of Cambridge, 16-21 Silver St, Cambridge CB3 9EP, UK
    The Swedish Entrepreneurship Forum, Grevgatan 34, SE-114 53 Stockholm, Sweden)

Abstract

Do local development policies influence local employment growth? Based on a survey to municipal managers in all Swedish municipalities, this is one of the first studies to empirically assess the relationship between reported local development initiatives (entrepreneurial governance (EG)) and growth of local employment. We find a weak but significant association between EG and employment growth for urban municipalities. This suggests that EG is more effective in larger, growing municipalities than in smaller, declining rural areas. Urban municipalities may of course have more resources for entrepreneurial governance than rural ones as they have grown substantially faster for a long period of time. The result thus indicates that EG and growth are in a positive interplay of interaction. When the EG index was divided into three sub-indexes after the entrepreneurial process (discover or create opportunities, collect resources and exploit opportunities) the analyses also showed positive correspondence between some sub-indexes and employment growth for the rural municipalities, indicating that EG is not solely a phenomenon connected to growth in urban, growing municipalities. In sum, the article indicates several avenues through which entrepreneurial governance at local level might be linked to local growth.

Suggested Citation

  • Amy Rader Olsson & Hans Westlund & Johan P. Larsson, 2020. "Entrepreneurial Governance and Local Growth," Sustainability, MDPI, Open Access Journal, vol. 12(9), pages 1-1, May.
  • Handle: RePEc:gam:jsusta:v:12:y:2020:i:9:p:3857-:d:355751
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    References listed on IDEAS

    as
    1. Hans Westlund & Johan P. Larsson & Amy Olsson, 2012. "Startups and Local Social Capital in the Municipalities of Sweden," ERSA conference papers ersa12p91, European Regional Science Association.
    2. Westlund, Hans & Bolton, Roger, 2003. "Local Social Capital and Entrepreneurship," Small Business Economics, Springer, vol. 21(2), pages 77-113, September.
    3. Edward L. Glaeser & Sari Pekkala Kerr & William R. Kerr, 2015. "Entrepreneurship and Urban Growth: An Empirical Assessment with Historical Mines," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 498-520, May.
    4. Kent Eliasson & Hans Westlund, 2013. "Attributes influencing self-employment propensity in urban and rural Sweden," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 50(2), pages 479-514, April.
    5. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    6. Rauch James E., 1993. "Productivity Gains from Geographic Concentration of Human Capital: Evidence from the Cities," Journal of Urban Economics, Elsevier, vol. 34(3), pages 380-400, November.
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    Citations

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    Cited by:

    1. Wim Naudé, 2017. "Cities and Entrepreneurs over Time: Like a Horse and Carriage?," Working Papers id:12321, eSocialSciences.
    2. Naudé, Wim, 2017. "Cities and Entrepreneurs over Time: Like a Horse and Carriage?," IZA Discussion Papers 11195, Institute of Labor Economics (IZA).

    More about this item

    Keywords

    entrepreneurial governance; municipal entrepreneurship; political entrepreneurship; local growth policy;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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