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Entrepreneurship and economic development in cities


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Audretsch, D. B., Belitski, M. and Desai, S. (2015) Entrepreneurship and economic development in cities. Annals of Regional Sciences, 55 (1). pp. 33-60. ISSN 1432-0592

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To link to this item DOI: 10.1007/s00168-015-0685-x


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.

Item Type:Article
Divisions:Henley Business School > Leadership, Organisations and Behaviour
ID Code:43286

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