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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.

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  • 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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    Cited by:

    1. Sierdjan Koster, 2007. "The Entrepreneurial And Replication Function Of New Firm Formation," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 98(5), pages 667-674, December.
    2. 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," Staff Papers 28651, Purdue University, Department of Agricultural Economics.
    3. 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.
    4. 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.
    5. Zoltan J. Acs & Catherine Armington, 2008. "The Impact of Geographic Differences in Human Capital on Service Firm Formation Rates," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 19, pages 244-278, Edward Elgar Publishing.
    6. Rodica Crudu, 2019. "The Role of Innovative Entrepreneurship in the Economic Development of EU Member Countries," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 15(1), pages 35-60.
    7. 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.
    8. 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.
    9. Cassar, Gavin, 2006. "Entrepreneur opportunity costs and intended venture growth," Journal of Business Venturing, Elsevier, vol. 21(5), pages 610-632, September.
    10. Sarah A. Low & Stephan Weiler, 2012. "Employment Risk, Returns, and Entrepreneurship," Economic Development Quarterly, , vol. 26(3), pages 238-251, August.
    11. Carolina Pasciaroni, 2013. "Ciudades de tamano medio e innovación: Una aproximación sistémica," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 7(1), pages 101-124, June.
    12. Fehmi Tanrısever & S. Sinan Erzurumlu & Nitin Joglekar, 2012. "Production, Process Investment, and the Survival of Debt‐Financed Startup Firms," Production and Operations Management, Production and Operations Management Society, vol. 21(4), pages 637-652, July.
    13. 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.
    14. 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.
    15. Ron Botham & Andrew Graves, 2011. "Regional variations in new firm job creation: The contribution of high growth start-ups," Local Economy, London South Bank University, vol. 26(2), pages 95-107, March.
    16. Carolina Pasciaroni, 2013. "Ciudades de tamano medio e innovacion: Una aproximacion sistemica," Documentos de Trabajo 11078, Universidad Tecnológica de Bolívar.
    17. 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.
    18. 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.

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