Entrepreneurship, Information, and Growth

25 Pages Posted: 9 Sep 2015

See all articles by devin michelle bunten

devin michelle bunten

MIT

Stephan Weiler

Colorado State University, Fort Collins - Department of Economics

Eric C. Thompson

University of Nebraska at Lincoln - Department of Economics

Sammy Zahran

Colorado State University, Fort Collins - Department of Economics

Date Written: September 2015

Abstract

We examine the contribution to economic growth of entrepreneurial marketplace information within a regional endogenous growth framework. Entrepreneurs are posited to provide an input to economic growth through the information revealed by their successes and failures. We empirically identify this information source with the regional variation in establishment births and deaths. To account for the potential endogeneity caused by forward‚Äźlooking entrepreneurs, we utilize instruments based on historic mining activity. We find that the information spillover component of local establishment birth and death rates have significant positive effects on subsequent entrepreneurship and employment growth for U.S. counties and metropolitan areas.

Suggested Citation

bunten, devin michelle and Weiler, Stephan and Thompson, Eric C. and Zahran, Sammy, Entrepreneurship, Information, and Growth (September 2015). Journal of Regional Science, Vol. 55, Issue 4, pp. 560-584, 2015, Available at SSRN: https://ssrn.com/abstract=2657844 or http://dx.doi.org/10.1111/jors.12157

Devin michelle Bunten (Contact Author)

MIT

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Cambridge, MA 02139
United States

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

Stephan Weiler

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

Eric C. Thompson

University of Nebraska at Lincoln - Department of Economics ( email )

Lincoln, NE 68588-0489
United States

Sammy Zahran

Colorado State University, Fort Collins - Department of Economics ( email )

Fort Collins, CO 80523-1771
United States

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