Small Business Economics

, Volume 30, Issue 1, pp 101–110 | Cite as

The Lag Structure of the Impact of Business Ownership on Economic Performance in OECD Countries

Article

abstract

This paper investigates the impact of changes in the number of business owners on three measures of economic performance, viz. employment growth, GDP growth and labor productivity growth. Particular attention is devoted to the lag structure. The analysis is performed at the country level for 21 OECD countries. Our results confirm earlier evidence on three stages in the impact of entry on economic performance: an initial direct positive effect, followed by a negative effect due to exiting capacities and finally a stage of positive supply-side effects. The net effect is positive for employment and GDP growth. Changes in the number of business owners have no effect on labor productivity.

Keywords

business ownership entrepreneurship economic growth lag structure 

JEL classifications:

L26 M13 O40 

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Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  1. 1.Faculty of Economics and Business AdministrationUniversity of MaastrichtMaastrichtThe Netherlands
  2. 2.Centre for Advanced Small Business Economics (CASBEC)Erasmus University RotterdamRotterdamThe Netherlands
  3. 3.EIMZoetermeerThe Netherlands

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