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Entrepreneurship and the business cycle: the “Schumpeter” effect versus the “refugee” effect—a French appraisal based on regional data

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  • Mathilde Aubry

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  • Jean Bonnet

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  • Patricia Renou-Maissant

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Abstract

We study the influences of new-firm start-ups on growth at the regional and macroeconomic level in France using a quarterly database over the 1993–2011 period. We find that fluctuations in GDP are an early indicator of new-firm start-ups. Nevertheless, the most important relationships are found between the unemployment rate and new-firm start-ups. Entrepreneurship is mainly driven by an unemployment “push” effect that have consequences upon the potential of growth of new-firm start-ups in most of the French regions. The Île-de France region is an exception since the “Schumpeter” effect prevails in the long term. Copyright Springer-Verlag Berlin Heidelberg 2015

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  • Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2015. "Entrepreneurship and the business cycle: the “Schumpeter” effect versus the “refugee” effect—a French appraisal based on regional data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 23-55, January.
  • Handle: RePEc:spr:anresc:v:54:y:2015:i:1:p:23-55
    DOI: 10.1007/s00168-014-0645-x
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    Citations

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    Cited by:

    1. Jean Bonnet & Sébastien Bourdin & Fatten Gazzah, 2017. "The entrepreuneurial context, a factor of Economic Growth in the Europe Union? A GWR analysis on the EU Regions," Working Papers halshs-01619798, HAL.
    2. repec:kap:sbusec:v:53:y:2019:i:1:d:10.1007_s11187-018-0038-0 is not listed on IDEAS
    3. Jean Bonnet, 2016. "From Knowledge to Innovation Economy: Developing Education and Creating Entrepreneurial Ecosystems," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2016-02, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    4. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant & Mathilde Aubry, 2014. "What happened to entrepreneurial economies after the financial crisis? An empirical study of OECD countries," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201416, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    5. Arnab Bhattacharjee & Jean Bonnet & Nicolas Le Pape & Régis Renault, 2016. "Going into Business and Out of Business: The Role of Human Capital," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 2016-04, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    6. repec:gam:jsusta:v:9:y:2017:i:10:p:1689-:d:112786 is not listed on IDEAS
    7. Halicioglu, Ferda & Yolac, Sema, 2015. "Testing the impact of unemployment on self-employment: empirical evidence from OECD countries," MPRA Paper 65026, University Library of Munich, Germany.

    More about this item

    Keywords

    L26; E32; R11;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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