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ENTREPRENEURSHIP, INFORMATION, AND GROWTH
Author(s) -
bunten devin,
Weiler Stephan,
Thompson Eric,
Zahran Sammy
Publication year - 2015
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/jors.12157
Subject(s) - endogeneity , entrepreneurship , metropolitan area , spillover effect , economic geography , instrumental variable , demographic economics , economics , knowledge spillover , geography , econometrics , finance , industrial organization , archaeology , microeconomics
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‐looking 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.