An empirical note on entrepreneurship and unemployment: Further evidence from U.S. States
Journal article
Authors | Apergis, Nicholas and Payne, James |
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Abstract | The purpose of this paper is to extend the existing literature on the causal dynamics between entrepreneurship and the unemployment rate (UR) in the use of the Kauffman Foundation index of entrepreneurial activity. Recently developed panel unit root tests with recognition of cross-sectional dependence and panel cointegration/error correction modeling techniques are applied to US States. The results indicate that the rate of entrepreneurship, the UR, and real per capita personal income are cointegrated. The panel error correction model reveals that bidirectional causality exists among the variables in both the short run and long run. With respect to entrepreneurship, an increase in the UR increases the rate of entrepreneurship, in turn, an increase in the rate of entrepreneurship lowers the UR. Moreover, the results also show a positive bidirectional relationship between the rate of entrepreneurship and real per capita personal income. |
Keywords | entrepreneurship and unemployment; US states |
Year | 2016 |
Journal | Journal of Entrepreneurship and Public Policy |
Publisher | Emerald |
ISSN | 2045-2101 |
Digital Object Identifier (DOI) | https://doi.org/10.1108/JEPP-10-2015-0029 |
Web address (URL) | http://hdl.handle.net/10545/623408 |
http://creativecommons.org/licenses/by-nc-nd/4.0/ | |
hdl:10545/623408 | |
Publication dates | 04 Nov 2016 |
Publication process dates | |
Deposited | 28 Jan 2019, 18:01 |
Contributors | University of Piraeus and Georgia College & State University |
File | File Access Level Open |
File | File Access Level Open |
https://repository.derby.ac.uk/item/9299v/an-empirical-note-on-entrepreneurship-and-unemployment-further-evidence-from-u-s-states
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