Business Dynamism and Economic Growth: U.S. Regional Evidence

Miguel Casares and Hashmat Khan (hashmatkhan@cunet.carleton.ca)

Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra from Departamento de Economía - Universidad Pública de Navarra

Abstract: We document empirical evidence on the determinants of U.S. regional growth over the last 25 years, with a special attention to the role of entrepreneurial activity or `business dynamism'. The main data source is the Business Dynamics Statistics (BDS) released by the U.S. Census Bureau. The key findings are: i) business entry and exit rates are similarly distributed across states, ii) neither entry nor exit rates have had a significant impact on regional growth, iii) higher business density results in faster regional growth, iv) entry rates have fallen over time and the states with greater business detrending have had weaker economic growth, v) states where entry and exit show substantial comovement (business churning) tend to grow faster, especially after 2007, vi) state-level population growth has no substantial e ffect on regional growth, and vii) the convergence hypothesis holds across the states of the U.S.

Keywords: Business dynamism; Entry-exit rates; Economic growth (search for similar items in EconPapers)
JEL-codes: O30 O40 O51 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2016
New Economics Papers: this item is included in nep-bec, nep-ent and nep-ure
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Citations: View citations in EconPapers (3)

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Working Paper: Business Dynamism and Economic Growth: U.S. Regional Evidence (2016)
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