The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries
Martin A. Carree
University of Maastricht - Department of Organization & Strategy
Erasmus University Rotterdam (EUR) - Centre for Advanced Small Business Economics (CASBEC); Erasmus Research Institute of Management (ERIM); EIM Netherlands - Business and Policy Research; Tinbergen Institute
28 2006, 11
ERIM Report Series Reference No. ERS-2006-064-ORG
This paper investigates the impact of changes in the number of business owners on three measures of economic performance, viz. employment growth, GDP growth and labor productivity growth. Particular attention is devoted to the lag structure. The analysis is performed at the country level for 21 OECD countries. Our results confirm earlier evidence on three stages in the impact of entry on economic performance: an initial direct positive effect, followed by a negative effect due to exiting capacities and finally a stage of positive supply-side effects. The net effect is positive for employment and GDP growth. Changes in the number of business owners have no effect on labor productivity.
Number of Pages in PDF File: 17
Keywords: Business Ownership, Entrepreneurship, Economic Growth, Lag Structure
JEL Classification: M, M13, O32, L26working papers series
Date posted: December 23, 2006
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