Equilibrium entrepreneurship rate, economic development and growth. Evidence from Spanish regions
Over the last few years the entrepreneurship phenomenon has become a frequent target for policymakers and economic researchers. Recently, a series of studies has identified the contribution of entrepreneurship to unemployment reduction and economic growth. At the same time, some researchers point out the increasing relevance of small and medium businesses in the developed economies. The aim of the study is to analyse the evolution of the entrepreneurship equilibrium rate as an economy reaches higher levels of development, to investigate how the entrepreneurship rate responds in contexts of imbalance, and how these imbalances affect economic growth. After a series of hypotheses, we have built up a model of two equations with provincial data for the period 1998--2002. From this model, we have verified the following evidence: the relationship between the level of development and the entrepreneurship equilibrium rate initially decreases and later increases, the existence of an automatic fit mechanism in situations of imbalance in the entrepreneurship rate, a penalization of economic growth for any deviation from the equilibrium rate and heterogeneous behaviour of the entrepreneurship rate in different Spanish regions.
Volume (Year): 17 (2005)
Issue (Month): 2 (March)
|Contact details of provider:|| Web page: http://www.tandfonline.com/TEPN20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/TEPN20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Davis, Steven J & Haltiwanger, John & Schuh, Scott, 1996.
"Small Business and Job Creation: Dissecting the Myth and Reassessing the Facts,"
Small Business Economics,
Springer, vol. 8(4), pages 297-315, August.
- Steven J. Davis & John Haltiwanger & Scott Schuh, 1993. "Small Business and Job Creation: Dissecting the Myth and Reassessing theFacts," NBER Working Papers 4492, National Bureau of Economic Research, Inc.
- Udo Brixy & Michael Niese, 2003. "The determinants of regional differences in new firm formation in West-Germany," ERSA conference papers ersa03p268, European Regional Science Association.
- Dan Johansson, 2004. "Is small beautiful? The case of the Swedish IT industry," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 16(4), pages 271-287, July.
- Blau, David M, 1987. "A Time-Series Analysis of Self-employment in the United State," Journal of Political Economy, University of Chicago Press, vol. 95(3), pages 445-67, June.
- Jock Collins, 2003. "Cultural diversity and entrepreneurship: policy responses to immigrant entrepreneurs in Australia," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(2), pages 137-149, January.
- McDougall, Patricia P. & Robinson, Richard Jr. & DeNisi, Angelo S., 1992. "Modeling new venture performance: An analysis of new venture strategy, industry structure, and venture origin," Journal of Business Venturing, Elsevier, vol. 7(4), pages 267-289, July.
- Monder Ram & David Smallbone, 2003. "Policies to support ethnic minority enterprise: the English experience," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 15(2), pages 151-166, January.
- Schultz, T.P., 1989.
"Women'S Changing Participation In The Labor Force: A World Perspective,"
571, Yale - Economic Growth Center.
- Schultz, T Paul, 1990. "Women's Changing Participation in the Labor Force: A World Perspective," Economic Development and Cultural Change, University of Chicago Press, vol. 38(3), pages 457-88, April.
- Schultz, T. Paul, 1989. "Women's changing participation in the labor force : a world perspective," Policy Research Working Paper Series 272, The World Bank.
- Iyigun, Murat F & Owen, Ann L, 1998.
"Risk, Entrepreneurship, and Human-Capital Accumulation,"
American Economic Review,
American Economic Association, vol. 88(2), pages 454-57, May.
- Murat F. Iyigun & Ann L. Owen, 1997. "Risk, entrepreneurship and human capital accumulation," Finance and Economics Discussion Series 1997-37, Board of Governors of the Federal Reserve System (U.S.).
- Schmitz, James A, Jr, 1989. "Imitation, Entrepreneurship, and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 721-39, June.
- Peter J. Kuhn & Herb J. Schuetze, 2001. "Self-employment dynamics and self-employment trends: a study of Canadian men and women, 1982-1998," Canadian Journal of Economics, Canadian Economics Association, vol. 34(3), pages 760-784, August.
- Carree, Martin & Klomp, Luuk, 1996. "Small Business and Job Creation: A Comment," Small Business Economics, Springer, vol. 8(4), pages 317-22, August.
When requesting a correction, please mention this item's handle: RePEc:taf:entreg:v:17:y:2005:i:2:p:145-161. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.