Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/281788 
Year of Publication: 
2024
Series/Report no.: 
Working Paper No. 01/24
Publisher: 
Institut für Mittelstandsforschung (IfM) Bonn, Bonn
Abstract: 
This research note examines the relationship between start-up rates and GDP per capita growth in urban and rural regions in Germany. Hereby, we take into account that urban and rural areas differ markedly in their resource endowment for entrepreneurship, which might be responsible for different effects of start-up activity on regional development. Therefore, we examine the growth implications rural entrepreneurship might have on the local economy. Our results suggest that new business formation is positively associated with economic growth in rural areas. In urban districts, however, the effect of start-up activity is insignificant. Therefore, regional development is less dependent on the emergence of new businesses in urban counties. The results also unveil that the often-cited inverse U-shaped relationship between entrepreneurship and GDP growth is mainly evident in rural areas.
Subjects: 
Regional growth
entrepreneurship
start-up rate
JEL: 
L26
O18
O47
Document Type: 
Working Paper

Files in This Item:
File
Size
482.84 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.