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

The IUP Journal of Entrepreneurship Development, Vol. VI, Nos. 3 & 4, pp. 39-53, September & December 2009

Posted: 5 Jan 2010

See all articles by Maribel N. Mojica

Maribel N. Mojica

West Virginia University

Tesfa G. Gebremedhin

West Virginia University - Davis College of Agriculture, Forestry, and Consumer Sciences

Peter V. Schaeffer

West Virginia University

Date Written: January 4, 2010

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 Two-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

Mojica, Maribel N. and Gebremedhin, Tesfa G. and Schaeffer, Peter V., An Empirical Analysis of the Link between Entrepreneurship and Economic Growth in West Virginia (January 4, 2010). The IUP Journal of Entrepreneurship Development, Vol. VI, Nos. 3 & 4, pp. 39-53, September & December 2009, Available at SSRN: https://ssrn.com/abstract=1531098

Maribel N. Mojica (Contact Author)

West Virginia University ( email )

Morgantown, WV 26506
United States

Tesfa G. Gebremedhin

West Virginia University - Davis College of Agriculture, Forestry, and Consumer Sciences ( email )

Morgantown, WV 26506
United States

Peter V. Schaeffer

West Virginia University ( email )

P.O. Box 6108
Morgantown, WV 26506-6108
United States
304-293-5572 (Phone)
304-293-3752 (Fax)

HOME PAGE: http://www.petervschaeffer.com

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