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Endogenous Growth and Entrepreneurial Activity in Cities

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  • Zoltan J Acs
  • Catherine Armington

Abstract

Recent theories of economic growth have stressed the role of externalities in generating growth. Using data from the Census Bureau that tracks all employers in the whole U.S. private sector economy, we examine the impact of these externalities, as measured by entrepreneurial activity, on employment growth in Local Market Areas. We find that differences in levels of entrepreneurial activity, diversity among geographically proximate industries, and the extent of human capital are positively associated with variation in growth rates, but the manufacturing sector appears to be an exception.

Suggested Citation

  • Zoltan J Acs & Catherine Armington, 2003. "Endogenous Growth and Entrepreneurial Activity in Cities," Working Papers 03-02, Center for Economic Studies, U.S. Census Bureau.
  • Handle: RePEc:cen:wpaper:03-02
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    File URL: https://www2.census.gov/ces/wp/2003/CES-WP-03-02.pdf
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    References listed on IDEAS

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    Cited by:

    1. Andre van Stel & Bart Diephuis, 2004. "Business dynamics and employment growth: a cross-country analysis," Papers on Entrepreneurship, Growth and Public Policy 2004-32, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    2. Cassar, Gavin, 2006. "Entrepreneur opportunity costs and intended venture growth," Journal of Business Venturing, Elsevier, vol. 21(5), pages 610-632, September.
    3. Floater, Graham & Rode, Philipp & Zenghelis, Dimitri, 2014. "Copenhagen: green economy leader report," LSE Research Online Documents on Economics 60781, London School of Economics and Political Science, LSE Library.
    4. Marcelin Joanis & Fernand Martin & Suzie St-Cerny, 2004. "Quel avenir pour les politiques de développement régional au Québec ? (Version mise à jour le 9 août 2004)," CIRANO Project Reports 2004rp-05, CIRANO.
    5. Marshall, Maria I. & Samal, Ananya, 2006. "The Effect of Human and Financial Capital on the Entrepreneurial Process: An Urban-Rural Comparison of Entrepreneurs in Indiana," 2006 Annual meeting, July 23-26, Long Beach, CA 21155, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Azam Chaudhry & Maryiam Haroon, 2015. "The Economic Impact of New Firms in Punjab," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 20(Special E), pages 143-182, September.
    7. Andrés Camacho Murillo & Hector Ríos Hernández, 2011. "Competencia intra-industria, aglomeraciones regionales y crecimiento económico: caso industria de alimentos," REVISTA FACULTAD DE CIENCIAS ECONÓMICAS, UNIVERSIDAD MILITAR NUEVA GRANADA, June.
    8. Carolina Pasciaroni, 2013. "Ciudades de tamaño medio e innovacion: Una aproximacion sistemica," DOCUMENTOS DE TRABAJO 011078, UNIVERSIDAD TECNOLÓGICA DE BOLÍVAR.
    9. Michael Fritsch & Pamela Mueller, 2004. "Regional Growth Regimes Revisited - The Case of West Germany," Papers on Entrepreneurship, Growth and Public Policy 2004-04, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    10. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2010. "Analysis of county employment and income growth in Appalachia: a spatial simultaneous-equations approach," Empirical Economics, Springer, vol. 38(1), pages 23-45, February.
    11. Andre van Stel & Martin Carree & Roy Thurik, 2004. "The effect of entrepreneurship on national economic growth: an analysis using the GEM database," Papers on Entrepreneurship, Growth and Public Policy 2004-34, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.

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    Keywords

    CES; economic; research; micro; data; microdata; chief; economist;

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