Is Entrepreneurship the Salvation for Enhanced Economic Growth?: A review of the empirical evidence of the effect ofentrepreneurship on employment, productivity andeconomic growth.
2008 (English)Report (Other academic)
During the last decades, enhancing entrepreneurship has emerged as commonly used policymeasurein order to improve economic growth. However, is it true that entrepreneurshipunambiguously can be claimed to improve economic growth? This paper intends to reviewthe empirical evidence on the relationship between entrepreneurship on three measures ofeconomic growth, employment, productivity and aggregate economic growth. The reviewshows that the studies that find no positive relationship between entrepreneurship andproductivity growth have studied a relatively short period. Most studies that have studied alonger period (about ten years) provide rather clear evidence on the positive relationshipbetween entrepreneurship and growth. Regarding the relationship between entrepreneurshipand employment growth, the empirical evidence to some extent point in different directions.However, it must be concluded that in the long run there seems to be a positive relationship.A majority of the studies on the relationship between entrepreneurship and aggregateeconomic growth find a positive relationship. Studies that find a negative relationship usuallyemploy non-harmonised self-employment rates as the measure of entrepreneurship.
Place, publisher, year, edition, pages
CESIS, KTH Royal Institute of Technology , 2008. , 26 p.
CESIS Working Paper Series in Economics and Institutions of Innovation, 143
Entrepreneurship, employment, productivity, economic growth.
IdentifiersURN: urn:nbn:se:kth:diva-72340OAI: oai:DiVA.org:kth-72340DiVA: diva2:487512
QC 201202092012-02-092012-01-312012-02-09Bibliographically approved