The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries

Martin Carree and Roy Thurik

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: 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.

Keywords: Business Ownership; Economic Growth; Entrepreneurship; Lag Structure (search for similar items in EconPapers)
JEL-codes: L26 M M13 O32 (search for similar items in EconPapers)
Date: 2006-11-28
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries (2008)
Working Paper: The Lag Structure of the Impact of Business Ownership on Eco-nomic Performance in OECD Countries (2006)
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