IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-01286744.html
   My bibliography  Save this paper

Quelle Place Pour L’Entrepreneur Dans Les Théories De La Croissance Des Pib Des Régions Françaises ?

Author

Listed:
  • François Facchini

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Martin Koning

    (IFSTTAR/AME/SPLOTT - Systèmes Productifs, Logistique, Organisation des Transports et Travail - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - Communauté Université Paris-Est)

Abstract

This article aims to demonstrate how useful the introduction of the entrepreneurial concept can be in completing the main theories of regional growth. Three bodies of literature are dealt with: the one derived from the neoclassical approach and renewed by the success of the New Economic Geography (NEG) those which commonly attached to radical heterodox thinking and, more particularly, the Keynesian view of regional development symbolized by economic base theory. The definition of the entrepreneur is quite broad and non -homogeneous as this concept has been studied for centuries by economists. In this article, we draw on the one given by some Austrian authors, such as Kirzner (1973). According to this vision, the entrepreneur is an actor who perceives opportunities for gain not already exploited by others. He is a political entrepreneur if he takes up opportunities on the political market. He is a merchant if he discovers commercial exchanges that are mutually profitable on the economic market. Such definition insists principally on the "alertness" of persons. Even if the above mentioned theories do not ignore this figure, it seems important to clarify the way they incorporate it into their respective reasoning.The orthodox approach of regional economics relies on the transposition of national macro-models to a smaller territorial scale. In this framework, regional growth is mainly explained through the achievement of productivity gains. Initially taken for granted, these productivity gains have been endogenized thanks to the introduction of new factors into the production function. Human capital, R&D activities or physical infrastructure generate externalities which do improve the productivity of labour and capital and thus enhance regional growth. Inspired from the new international trade theories, the NEG goes into detail and provides territorial support to these productive effects. Combined with transportation costs, agglomeration economies indeed allow economists to theorize productivity gains and to explain uneven spatial development. Although they have been academically praised, these models however ignore the concept of the entrepreneur. In order to remedy to this, Audretsch and Keilbach (2004) have completed the endogeneous growth model with a new variable: "entrepreneurship capital" (expressed by the rate of firm creation in the regional population). Their study focuses on German regions and is empirically tested. According to the authors, the entrepreneur is seen as a medium through which economic knowledge can be selected and diffused throughout the regional territory. Entrepreneurship capital" is therefore complementary to R&D activities and improves their productivity thanks to spill-over effects. This result is especially robust when tested for the NITC sectors. A conclusion can be drawn that the productive activities of entrepreneurs favour regional growth, a conclusion that the neoclassical models should seek to demonstrate more precisely.The heterodox corpus refers to a "patchwork " of theories which commonly deny the view of an equilibrated economy. In regional science, these heterodox theories focus on two main issues: the productive development of territories and their mobilization as an economic resource. The first has been essentially studied by economists of the endogenous development school of thought (Piore and Sabel, 1984) and by the Californian School of Economic Geography (Scott, 2001). They highlight that the point that the territorial organization of economic activities into specialized industrial districts, because of the flexibility and proximity it allows, may offer a viable alternative to the concentration of large firms. Concerning the mobilization of the territory as a n economic resource, the Regulationist School (Kratke, 1997) insists on institutional arrangements that are produced by a given space and then characterize it. The growth differential between regions does not only provide their initial factors endowments but above all from the specificities of their systems of regulation. Even if these heterodox theories do not share the optimistic view of the market economy praised by Austrian authors, they nevertheless show many similarities. First, both theories agree n ot to take GDP as an indicator of territorial development. Second, they explain capitalism based on the same entity: the firm. As entrepreneurs perceive opportunities not already exploited on the market, they participate in territorial development and support the search for factor productivity gains. Above all, the heterodox and entrepreneurial theories seem to develop territorial themes in a very similar fashion. Entrepreneurs actions are indeed localized into a specific "cognitive space" n which agents share knowledge and networks of social relations (Ikeda, 2004). They can therefore be considered as captive by a territory which generates a specific institutional framework. Eonomic base theory can be seen as the Keynesian perspective of territorial development. It indeed stipulates that the regional trajectory does not depend on output but rather on income. Thus, the way regions succeed in attracting income from the "rest of the world" becomes critical, as is their ability to retain this income. A territory may generate an impressive GDP but suffer after that from an "invisible circulation of wealth" (Davezies, 2008). In the French case, economic base theory explains why "unproductive " territories actually may experience more favourable development than "productive" ones. Population aging, increased mobility and a "new" way of life are all factorsinadequately considered in neoclassical models; they play out through a multiplicative mechanism and increase regional demand in territories with residential amenities.Baumol (1990) and the Austrian theory of political entrepreneurship advocate a clear distinction between incomes derived from productive and those from unproductive activities. An agent may indeed have the choice between engaging oneself into profit or rent-seeking activities. Such a decision depends critically on incentives given by the institutional framework. Orienting individuals towards rent-seeking induces waste of resources and reduces potential economic growth. Economic base theory should therefore seek to separate more precisely incomes coming from merchant activities and based on exports from those dependent on public transfers. This distinction could highlight how unviable a territorial scheme is in which productive regions finance unproductive ones. By undermining the future growth of wealthy regions and giving individuals inappropriate incentives, such an institutional framework could ultimately lose out at the national scale.

Suggested Citation

  • François Facchini & Martin Koning, 2010. "Quelle Place Pour L’Entrepreneur Dans Les Théories De La Croissance Des Pib Des Régions Françaises ?," Post-Print hal-01286744, HAL.
  • Handle: RePEc:hal:journl:hal-01286744
    Note: View the original document on HAL open archive server: https://hal.science/hal-01286744
    as

    Download full text from publisher

    File URL: https://hal.science/hal-01286744/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pierre‐Philippe Combes & Gilles Duranton & Laurent Gobillon & Diego Puga & Sébastien Roux, 2012. "The Productivity Advantages of Large Cities: Distinguishing Agglomeration From Firm Selection," Econometrica, Econometric Society, vol. 80(6), pages 2543-2594, November.
    2. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    3. Combes, Pierre-Philippe & Lafourcade, Miren & Thisse, Jacques-François & Toutain, Jean-Claude, 2011. "The rise and fall of spatial inequalities in France: A long-run perspective," Explorations in Economic History, Elsevier, vol. 48(2), pages 243-271, April.
    4. Philippe Martin & Gianmarco I.P. Ottaviano, 2021. "Growing locations: Industry location in a model of endogenous growth," World Scientific Book Chapters, in: Firms and Workers in a Globalized World Larger Markets, Tougher Competition, chapter 1, pages 3-24, World Scientific Publishing Co. Pte. Ltd..
    5. Desrochers, Pierre, 2001. "Geographical Proximity and the Transmission of Tacit Knowledge," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 14(1), pages 25-46, March.
    6. François Facchini, 2006. "L’entrepreneur politique et son territoire," Post-Print hal-01286777, HAL.
    7. Pierre-Philippe Combes & Miren Lafourcade, 2005. "Transport costs: measures, determinants, and regional policy implications for France," Journal of Economic Geography, Oxford University Press, vol. 5(3), pages 319-349, June.
    8. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    9. Arthur T. Denzau & Douglass C. North, 1994. "Shared Mental Models: Ideologies and Institutions," Kyklos, Wiley Blackwell, vol. 47(1), pages 3-31, February.
    10. Steven Coissard, 2007. "Perspectives. La nouvelle économie géographique de Paul KRUGMAN. Apports et limites," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(1), pages 111-125.
    11. David B. Audretsch (ed.), 2006. "Entrepreneurship, Innovation and Economic Growth," Books, Edward Elgar Publishing, number 4130.
    12. Pierre Perrin, 2001. "Un apport autrichien à la théorie du territoire," Revue d'économie régionale et urbaine, Armand Colin, vol. 0(2), pages 229-248.
    13. David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
    14. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    15. David Audretsch & Max Keilbach, 2004. "Entrepreneurship and regional growth: an evolutionary interpretation," Journal of Evolutionary Economics, Springer, vol. 14(5), pages 605-616, December.
    16. François Facchini, 2007. "L’entrepreneur comme un homme prudent," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286765, HAL.
    17. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    18. Audretsch, David B. & Keilbach, Max C. & Lehmann, Erik E., 2006. "Entrepreneurship and Economic Growth," OUP Catalogue, Oxford University Press, number 9780195183511.
    19. Andrew C. Krikelas, 1992. "Why regions grow: a review of research on the economic base model," Economic Review, Federal Reserve Bank of Atlanta, issue Jul, pages 16-29.
    20. Michael Fritsch & Pamela Mueller, 2004. "Effects of New Business Formation on Regional Development over Time," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 961-975.
    21. Frédéric Carluer & Guillaume Gaulier, 2005. "The impact of convergence in the industrial mix on regional comparative growth: Empirical evidence from the French case," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 39(1), pages 85-105, March.
    22. Homer Hoyt, 1954. "Homer Hoyt on Development of Economic Base Concept," Land Economics, University of Wisconsin Press, vol. 30(2), pages 182-186.
    23. Catin, M., 1992. "La modelisation regionale," Papers 142, Universite Aix-Marseille III.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. François Facchini & Martin Koning, 2010. "Quelle Place Pour L’Entrepreneur Dans Les Théories De La Croissance Des Pib Des Régions Françaises ?," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01286744, HAL.
    2. Raquel Ortega-Argilés, 2022. "The evolution of regional entrepreneurship policies: “no one size fits all”," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(3), pages 585-610, December.
    3. Combes, Pierre-Philippe & Gobillon, Laurent, 2015. "The Empirics of Agglomeration Economies," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 247-348, Elsevier.
    4. Dienes, Christian & Schneck, Stefan & Wolter, Hans-Jürgen, 2018. "Die Auswirkungen des Gründungsgeschehens auf das regionale Wirtschaftswachstum," IfM-Materialien 270, Institut für Mittelstandsforschung (IfM) Bonn.
    5. Rosa Caiazza & Maksim Belitski & David B. Audretsch, 2020. "From latent to emergent entrepreneurship: the knowledge spillover construction circle," The Journal of Technology Transfer, Springer, vol. 45(3), pages 694-704, June.
    6. Mirjam Praag & André Stel, 2013. "The more business owners, the merrier? The role of tertiary education," Small Business Economics, Springer, vol. 41(2), pages 335-357, August.
    7. Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2013. "Business cycle and entrepreneurial behavior using French regional data," Economics Working Paper Archive (University of Rennes & University of Caen) 201304, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    8. Robert Huggins & Piers Thompson, 2015. "Entrepreneurship, innovation and regional growth: a network theory," Small Business Economics, Springer, vol. 45(1), pages 103-128, June.
    9. repec:elg:eechap:14395_15 is not listed on IDEAS
    10. Lukas Matejovsky & Sandeep Mohapatra & Bodo Steiner, 2014. "The Dynamic Effects of Entrepreneurship on Regional Economic Growth: Evidence from Canada," Growth and Change, Wiley Blackwell, vol. 45(4), pages 611-639, December.
    11. Ho, Sin Yu & Beri, Parfait Bihkongnyuy, 2024. "The impact of SME sector on economic growth in Africa," MPRA Paper 122552, University Library of Munich, Germany.
    12. Maksim Belitski & Rosa Caiazza & Erik E. Lehmann, 2021. "Knowledge frontiers and boundaries in entrepreneurship research," Small Business Economics, Springer, vol. 56(2), pages 521-531, February.
    13. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
    14. Mathilde Aubry & Jean Bonnet & Patricia Renou-Maissant, 2015. "Entrepreneurship and the business cycle: the “Schumpeter” effect versus the “refugee” effect—a French appraisal based on regional data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 54(1), pages 23-55, January.
    15. Michael Fritsch & Pamela Mueller, 2008. "The effect of new business formation on regional development over time: the case of Germany," Small Business Economics, Springer, vol. 30(1), pages 15-29, January.
    16. Thisse, Jacques-François & Proost, Stef, 2015. "Skilled Cities, Regional Disparities, and Efficient Transport: The state of the art and a research agenda," CEPR Discussion Papers 10790, C.E.P.R. Discussion Papers.
    17. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    18. Charlie Karlsson, 2012. "Entrepreneurship, social capital, governance and regional economic development: an introduction," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship, Social Capital and Governance, chapter 1, pages 1-26, Edward Elgar Publishing.
    19. E. A. Kolomak, 2022. "The Contradictory Impacts of Inhomogeneous Market Potential on the Development of Russian Cities and Towns," Regional Research of Russia, Springer, vol. 12(3), pages 261-270, September.
    20. Sjoerd Beugelsdijk, 2010. "Entrepreneurial Culture, Regional Innovativeness and Economic Growth," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 129-154, Springer.
    21. Sierdjan Koster & Charlie Karlsson, 2010. "New Firm Formation and Economic Development in a Globalizing Economy," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Entrepreneurship and Regional Development, chapter 3, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-01286744. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.