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The Relationship between Added Value Growth and Entrepreneurship in Industrial Sector: Case of Sistan and Baluchestan Province

Author

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  • Abbas ali Rezaei

    (Organization of Finance and Economic affairs in Sistan & Balouchestan)

Abstract

In this paper, we investigate the relation between entrepreneurship and Added Value Growth in Industrial Sector. For this purpose, we investigated the data related to sistan and Baluchestan Province in the period of 2000 to 2010 by using endogenous growth model. In this model, we set Added Value Growth in Industrial Sector as a function of entrepreneurship, physical capital and labor based on Cobb-Douglas Form. Estimated elasticity of Added Value Growth included 0.60, 0.38, and 0.92 as compared to entrepreneurship, physical capital and labor, respectively. They all have high statistical significances. The results indicate positive effect of entrepreneurship and innovation on the Added Value Growth . In other words, increase of entrepreneurship and innovation coefficient will increase Added Value of Industrial Sector in Sistan and Baluchestan Province . The positive effect of physical capital and labor on the Added Value Growth is another result of this study.

Suggested Citation

  • Abbas ali Rezaei, 2014. "The Relationship between Added Value Growth and Entrepreneurship in Industrial Sector: Case of Sistan and Baluchestan Province," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 2(2), pages 59-67, June.
    • Handle: RePEc:hyp:journl:v:2:y:2014:i:2:p:59-67
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    More about this item

    Keywords

    Entrepreneurship; Physical Capital; Endogenous Growth Model; Cobb-Douglas Function; Economic Growth;
    All these keywords.

    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • P36 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • Z19 - Other Special Topics - - Cultural Economics - - - Other

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