Entrepreneurship and economic development in cities

David Audretsch (), Maksim Belitski () and Sameeksha Desai ()

The Annals of Regional Science, 2015, vol. 55, issue 1, 33-60

Abstract: Policy makers have identified the relationship between entrepreneurship and economic development. Yet, little is known about how this relationship varies over time in cities with different market sizes. This study examines the link between entrepreneurship and economic development using a panel of 127 European cities between 1994 and 2009. We found that the immediate economic development impact of new firm start-ups is positive for both small-/medium-size cities and large cities. The relationship is U-shaped for large cities, with the indirect effect taking 7 years, but the indirect effect does not occur in small-/medium-size cities. We offer useful information for policy makers, practitioners, and scholars. Copyright Springer-Verlag Berlin Heidelberg 2015

Keywords: L26; M13; O18; R11; R50 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (76)

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DOI: 10.1007/s00168-015-0685-x

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