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Does Self-Employment Enhance Regional Economic Development

Author

Listed:
  • SAIMA BASHIR

    (Department of Business and Economics, California University of Pennsylvania, California, PA 15419, USA)

  • TESFA GEBREMEDHIN

    (Resource Management Department, West Virginia University, Morgantown, WV 26506, USA)

  • MUHAMMAD ARSHAD CHAWDHRY

    (Department of Business and Economics, California University of Pennsylvania, California, PA 15419, USA)

Abstract

Creative and qualified self-employed individuals contribute to economic growth by inventing new products, production processes, distribution methods and employing other people. Researchers are interested in self-employment if it can provide jobs to the unemployed population and also for those who face job discrimination. However, increase in self-employment is uncertain because entrepreneurial skills are assumed to be risky and self-employed workers can learn their skills gradually after starting their businesses. Economists pay special attention to finding the conceptual relationship between entrepreneurship as self-employment and economic development. Furthermore, studies show that the process of entrepreneurship has significant spatial autocorrelation and affects neighboring counties. Thus, the objective of this study is to identify and estimate the spatial impacts of self-employment in the economic development of the northeastern United States. The study expects to provide policy makers with vital information for policy measures designed for economic development. The study uses the Spatial Durbin Model (SDM) to estimate the relationship of employment, population and per capita income against self-employment. The results indicate that employment and population are positively linked to self-employment. Also, results highlight the positive contribution of self-employment on rural economic development.

Suggested Citation

  • Saima Bashir & Tesfa Gebremedhin & Muhammad Arshad Chawdhry, 2014. "Does Self-Employment Enhance Regional Economic Development," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 19(04), pages 1-15.
    • Handle: RePEc:wsi:jdexxx:v:19:y:2014:i:04:n:s1084946714500253
    DOI: 10.1142/S1084946714500253
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    References listed on IDEAS

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    1. Andreas Freytag & Roy Thurik, 2010. "Entrepreneurship and its Determinants in a Cross-Country Setting," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 157-170, Springer.
    2. Zoltan J. Acs & Catherine Armington, 2008. "Employment Growth and Entrepreneurial Activity in Cities," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 25, pages 353-369, Edward Elgar Publishing.
    3. Wim Naudé, 2008. "Entrepreneurship in Economic Development," WIDER Working Paper Series RP2008-20, World Institute for Development Economic Research (UNU-WIDER).
    4. Henrekson, Magnus, 2007. "Entrepreneurship and Institutions," Working Paper Series 707, Research Institute of Industrial Economics.
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    Cited by:

    1. Sergio A. Contreras, 2019. "Self-Employment in Times of Crisis: The Case of the Spanish Financial Crisis," Economies, MDPI, vol. 7(3), pages 1-14, August.
    2. Madhuri Mahato & Julie Vardhan, 2022. "The spatial distribution of self-employment — evidence from Jharkhand," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 291-304, December.

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