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Entrepreneurship and Industry Growth

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In this paper, we investigate the relation between entrepreneurship and Growth of Value Added in Industrial Sector. For this purpose, we investigated the data related to sistan and Baluchestan Province in the period of 2000 to 2010 by using endogenous growth model. In this model, we set Growth of Value Added in Industrial Sector as a function of entrepreneurship, physical capital and labor based on Cobb-Douglas Form. Estimated elasticity of Growth of Value Added included 0.60, 0.38, and 0.92 as compared to entrepreneurship, physical capital and labor, respectively. They all have high statistical significances. The results indicate positive effect of entrepreneurship and innovation on the Growth of Value Added. In other words, increase of entrepreneurship and innovation coefficient will increase Value Added of Industrial Sector in Sistan and Baluchestan Province. The positive effect of physical capital and labor on the Growth of Value Added is another result of this study.


International Letters of Social and Humanistic Sciences (Volume 31)
M. Mehrara and A. A. Rezaei, "Entrepreneurship and Industry Growth", International Letters of Social and Humanistic Sciences, Vol. 31, pp. 27-36, 2014
Online since:
Jun 2014