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Entry, Exit and Economic Growth: US Regional Evidence

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Abstract

Entry rates have a negative long-run effect on US regional growth, which contradicts innovation-based growth models. This puzzle is resolved when a model-consistent specification is estimated using per capita entry growth. Evidence supports the Schumpeterian hypothesis of a positive relationship between exit and economic growth.

Suggested Citation

  • Miguel Casares & Hashmat Khan, 2014. "Entry, Exit and Economic Growth: US Regional Evidence," Carleton Economic Papers 14-08, Carleton University, Department of Economics.
    • Handle: RePEc:car:carecp:14-08
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    References listed on IDEAS

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    More about this item

    Keywords

    Entry-exit rates; Per capita entry-exit growth; Economic growth;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada

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