Convergence in Venture Capital Investments: Evidence from a Panel of 18 US Regions

T. Parker Ballinger, Wendy Habegger, Clifton T. Jones and Mark A. Thompson

Journal of Regional Analysis and Policy, 2016, vol. 46, issue 2

Abstract: This empirical study examines the time series properties of U.S. venture capital investments across different geographical markets. Using a battery of panel unit root tests, we find substantial evidence of stochastic convergence in that (relative) venture capital investment shares are stationary. Our findings indicate that venture capital investment shocks are temporary and tend to adjust back to their respective long - run means. These results are supportive of convergence in economic activity as there may be diminishing returns to venture capital. As such, regional policymakers may use historical data to make projections and capital allocation decisions with regards to investment in entrepreneurial activities.

Keywords: Financial; Economics (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/262576/files/j ... 2_ballinger_etal.pdf (application/pdf)
https://ageconsearch.umn.edu/record/262576/files/j ... l.pdf?subformat=pdfa (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: https://EconPapers.repec.org/RePEc:ags:jrapmc:262576

DOI: 10.22004/ag.econ.262576

Access Statistics for this article

More articles in Journal of Regional Analysis and Policy from Mid-Continent Regional Science Association Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().