EconStor >
Max-Planck-Institut für Ökonomik, Jena >
Discussion Papers on Entrepreneurship, Growth and Public Policy, MPI für Ökonomik >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/19977
  
Title:Business dynamics and employment growth : a cross-country analysis PDF Logo
Authors:van Stel, André J.
Diephuis, Bart
Issue Date:2004
Series/Report no.:Papers on entrepreneurship, growth and public policy 3204
Abstract:This paper examines the relationship between business dynamics (entry and exit of firms) and employment growth at the country-industry level. We use a cross-country data set with harmonized data on numbers of entries and exits for a selection of fast-growing and innovative industries in six developed economies. In our regression analysis we allow for separate effects of both the extent of business dynamics (volatility of firms) and the composition of business dynamics (net-entry of firms). We also test for the existence of an 'optimal' level of business volatility, possibly indicating that entry and exit levels are too high in certain industries. We find positive employment effects of net-entry rates, both for manufacturing industries and for services industries. Regarding volatility, we find a positive effect for manufacturing but no significant effect for services. This implies that different government policies may be required to achieve growth in these sectors. We find no evidence for an 'optimal' level of business volatility.
Subjects:business dynamics
employment growth
enterpreneurship
JEL:M13
L10
O57
J23
Document Type:Working Paper
Appears in Collections:Discussion Papers on Entrepreneurship, Growth and Public Policy, MPI für Ökonomik

Files in This Item:
File Description SizeFormat
2004-32.pdf310.5 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/19977

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.