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Unemployment as a factor of entrepreneurial activity

Author

Listed:
  • Sebastian Șipoș-Gug

    () (University of Oradea, Faculty of Economics)

Abstract

We aim to investigate the nature and direction of the relationship between unemployment and entrepreneurial activity. Our research, using monthly data from Romania (1991-2012), brings evidence to the hypothesis that the relationship is non-linear in regard to the temporal delay factor. From our data it would seem that unemployment and entrepreneurial activity are negatively related on the short term, and positively related on the long term. Based on these results, we propose that the two effects be treated separately, and we propose two predictive models of entrepreneurial activity based on unemployment that follow this distinction.

Suggested Citation

  • Sebastian Șipoș-Gug, 2012. "Unemployment as a factor of entrepreneurial activity," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 15(46bis), pages 169-186, December.
  • Handle: RePEc:rej:journl:v:15:y:2012:i:46bis:p:169-186
    as

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    References listed on IDEAS

    as
    1. Schumpeter, Joseph A., 1947. "The Creative Response in Economic History," The Journal of Economic History, Cambridge University Press, vol. 7(2), pages 149-159, November.
    2. Faria, João Ricardo & Cuestas, Juan Carlos & Gil-Alana, Luis A., 2009. "Unemployment and entrepreneurship: A cyclical relation?," Economics Letters, Elsevier, vol. 105(3), pages 318-320, December.
    3. Faria, João Ricardo & Cuestas, Juan Carlos & Mourelle, Estefanía, 2010. "Entrepreneurship and unemployment: A nonlinear bidirectional causality?," Economic Modelling, Elsevier, vol. 27(5), pages 1282-1291, September.
    4. Justin van der Sluis & Mirjam van Praag & Wim Vijverberg, 2008. "Education And Entrepreneurship Selection And Performance: A Review Of The Empirical Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 22(5), pages 795-841, December.
    5. Ritsila, Jari & Tervo, Hannu, 2002. "Effects of Unemployment on New Firm Formation: Micro-level Panel Data Evidence from Finland," Small Business Economics, Springer, vol. 19(1), pages 31-40, August.
    6. Catalin Pauna & John S. Earle, 1998. "Long-term unemployment, social assistance and labor market policies in Romania," Empirical Economics, Springer, vol. 23(1/2), pages 203-235.
    7. Congregado, Emilio & Golpe, Antonio A. & Carmona, Mónica, 2010. "Is it a good policy to promote self-employment for job creation? Evidence from Spain," Journal of Policy Modeling, Elsevier, vol. 32(6), pages 828-842, November.
    8. Audretsch, David B. & Lehmann, Erik E., 2005. "Does the Knowledge Spillover Theory of Entrepreneurship hold for regions?," Research Policy, Elsevier, vol. 34(8), pages 1191-1202, October.
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    10. Shaoming Cheng & Huaqun Li, 2010. "The effects of unemployment on new firm formation revisited: Does space matter?," Regional Science Policy & Practice, Wiley Blackwell, vol. 2(2), pages 97-120, November.
    11. Alina Badulescu, 2010. "Entrepreneurial Motivations: Are Women Driven By Different Motivators Than Men? (Ii - Some Evidence For Eu And Romania)," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 358-364, December.
    12. Audretsch, David B. & Keilbach, Max, 2008. "Resolving the knowledge paradox: Knowledge-spillover entrepreneurship and economic growth," Research Policy, Elsevier, vol. 37(10), pages 1697-1705, December.
    13. DODESCU Anca & Badulescu Alina, 2009. "Considerations About Evolution, Density And Specialization Perspectives Of Smes Sector In The Western Part Of Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 2(1), pages 302-309, May.
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    More about this item

    Keywords

    Romania; entrepreneurship; unemployment rate; company birth rate; predictive model;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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