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An Empirical Analysis of the Link between Entrepreneurship and Economic Growth in West Virginia

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  • Maribel Mojica

    (Division of Resource Management, West Virginia University)

  • Tesfa Gebremedhin

    (Division of Resource Management, West Virginia University)

  • Peter Schaeffer

    (Division of Resource Management, West Virginia University)

Abstract

Entrepreneurship variables constructed from county-level proprietorship and firm birth data were included in an endogenous growth model to determine the relationship between entrepreneurship and economic growth in West Virginia. The empirical estimates using weighted least squares (WLS) and 2-stage least squares (2SLS) regressions generally show empirical evidence regarding the positive contribution of entrepreneurial activity to economic growth. Counties with more proprietors and business start ups exhibited higher growths in population and employment growth compared to less entrepreneurial counties. However, none of the entrepreneurship variables used in the study is statistically significant in determining per capita income growth.

Suggested Citation

  • Maribel Mojica & Tesfa Gebremedhin & Peter Schaeffer, 2009. "An Empirical Analysis of the Link between Entrepreneurship and Economic Growth in West Virginia," Working Papers Working Paper 2009-02, Regional Research Institute, West Virginia University.
    • Handle: RePEc:rri:wpaper:2009wp02
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    Cited by:

    1. Moga Tano Jilenga, 2017. "Social Enterprise and Economic Growth: A Theoretical Approach and Policy Recommendations," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 41-49, January.
    2. Saima Bashir & Tesfa Gebremedhin, 2011. "An Analysis of the Relationship Between New Firm Formation and Economic Development in the Northeast Region of the United States," Working Papers Working Paper 2011-02, Regional Research Institute, West Virginia University.
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    More about this item

    Keywords

    entrepreneurship; economic growth; West Virginia; weighted least squares; 2-stage least squares;
    All these keywords.

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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