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The Dynamic Effects of Entrepreneurship on Regional Economic Growth: Evidence from C anada
Author(s) -
Matejovsky Lukas,
Mohapatra Sandeep,
Steiner Bodo
Publication year - 2014
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/grow.12055
Subject(s) - entrepreneurship , vector autoregression , estimation , economics , globe , economic geography , regional development , econometric model , econometrics , econometric analysis , growth model , structural vector autoregression , regression analysis , regional science , macroeconomics , geography , monetary policy , biology , computer science , management , finance , neuroscience , machine learning
Facilitating entrepreneurship to address regional income disparity continues to be a major concern of policy makers across the globe. This study explores the temporal pattern of income disparity for C anadian provinces in two estimation steps. First, an econometric growth regression model is applied to identify the impact of entrepreneurship on regional economic growth. The estimation results suggest that entrepreneurship, measured in terms of the self‐employment rate, plays a pivotal role in determining regional development in C anada. Second, a dynamic vector autoregression model is employed to simulate long‐run regional growth effects that result from policy shocks affecting entrepreneurship. Compared to other growth drivers, entrepreneurship is found to have more pronounced and long‐term stimulative effects on regional development for the period of 1987–2007.