The Relation between Economic Development and Business Ownership revisited

Arbeitspapier

This paper revisits the two-equation model of Carree, van Stel, Thurik and Wennekers (2002) where deviations from the ‘equilibrium’ rate of business ownership play a central role determining both the growth of business ownership and that of economic development. Two extensions of the original setup are addressed: using longer time series of averaged data of 23 OECD countries (up to 2004) we can discriminate between different functional forms of the ‘equilibrium’ rate and we allow for different penalties for being above or under the ‘equilibrium’ rate. The additional data do not provide evidence of a superior statistical fit of a U-shaped ‘equilibrium’ relationship when compared to an L-shaped one. There appears to be a growth penalty for having too few business owners but not so for having too many.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 07-022/3

Classification and Topics

• Classification: Wirtschaft ; Entrepreneurship ; Economic Development: General
• Subject: entrepreneurship ; economic development ; economic growth ; business ownership ; Eigentümerstruktur ; Wirtschaftswachstum ; Empirische Methode ; OECD-Staaten

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Carree, Martin ; van Stel, André ; Thurik, Roy ; Wennekers, Sander
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/86183
• Last update: 10.03.2025, 11:44 AM CET