Microenterprises and economic growth: A panel study of the US states 1977-1997
- S. Deller and J. C. McConnon Jr (2009). Applied Economics Letters, 1307-1312
- Abstract: In this study, we examine the role of microenterprises in US economic growth. Using a panel of the 48 lower US states from 1977 to 1997, we estimate an expanded Carlino-Mills type model of growth. Microenterprises are defined as having between one and four employees. Results suggest that a higher share of goods producing firms that are microenterprises tend to be associated with lower levels of population, employment and income growth, while a higher share of service producing firms classified as micro are associated with higher levels of growth. These results suggest that care must be taken when promoting microenterprises as a major engine of economic growth. 2009 Taylor & Francis.
- Theme: Growth and performance
- Keywords: economic growth, employment generation, firm size, growth modeling, income distribution, microenterprise, panel data, North America, United States
- Reference type: Journal Article
- Geographic location: United States, North America, Global North