EconPapers    
Economics at your fingertips  
 

Entrepreneurship, Management Servicesand Economic Growth

Vicente Salas Fumás () and J. Javier Sánchez Asín ()
Additional contact information
Vicente Salas Fumás: Departamento de Economía y Dirección de Empresas. Facultad de Ciencias Económicas y Empresariales. Universidad de Zaragoza
J. Javier Sánchez Asín: Departamento de Economía y Dirección de Empresas. Facultad de Ciencias Económicas y Empresariales. Universidad de Zaragoza

Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza

Abstract: We set out to model the joint production of entrepreneurs and workers assuming that the former contribute to the output of the firm by making entrepreneurial decisions (with increasing returns), and managing the productive resources (with decreasing returns). The model explains the equilibrium output of the representative firm and the equilibrium share of entrepreneurs in the working population, as a function of the quality of the entrepreneur and of the elasticity of output to the entrepreneur’s management services. The time dynamics of the solution imply that the contribution to labor productivity growth from increases in the quality of entrepreneurs over time is higher in countries with a larger starting share of entrepreneurs and higher in countries with lower starting labor productivity (convergence enhancing). The model predictions are tested with data from OECD countries for the period 1970-2002. We find that improvements in the quality of entrepreneurs can make a substantial contribution to economic growth by means of more productive management services.

Keywords: Entrepreneurial quality; productivity growth; OECD countries; Coasian entrepreneur (search for similar items in EconPapers)
JEL-codes: O47 J24 L26 M13 M55 (search for similar items in EconPapers)
Date: 2007-03
References: Add references at CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.dteconz.unizar.es/DT2007-03.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:zar:wpaper:dt2007-03

Access Statistics for this paper

More papers in Documentos de Trabajo from Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza Contact information at EDIRC.
Series data maintained by Vicente Pinilla ().

 
Page updated 2015-10-11
Handle: RePEc:zar:wpaper:dt2007-03