The effect of entrepreneurship on economic development-an empirical analysis using regional entrepreneurship culture

M. Fritsch, Michael Wyrwich

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53 Citations (Scopus)

Abstract

We use the historical self-employment rate as an indicator of a regional culture of entrepreneurship and take it as an instrument to analyze the effect of entrepreneurship on economic growth in recent periods. The results indicate that German regions with a high level of entrepreneurship in the mid-1920s have higher start-up rates about 50 years later. Thus, a regional culture of entrepreneurship is an important resource for the persistence of entrepreneurship. Furthermore, we find that there is a significant effect of start-up activity on regional employment growth when using entrepreneurship culture as instrument for start-up activity.

Original languageEnglish
Pages (from-to)157-189
Number of pages33
JournalJournal of Economic Geography
Volume17
Issue number1
DOIs
Publication statusPublished - Jan-2017
Externally publishedYes

Keywords

  • Entrepreneurship
  • economic development
  • self-employment
  • new business formation
  • entrepreneurship culture
  • institutions
  • FIRM FORMATION
  • BUSINESS FORMATION
  • STRUCTURAL-CHANGE
  • GERMANY
  • GROWTH
  • TIME
  • DETERMINANTS
  • PERFORMANCE
  • PERSISTENCE
  • DYNAMICS

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