Entrepreneurship and Industry Growth

Mehrara, Mohsen; Rezaei, Abbas Ali

doi:10.18052/www.scipress.com/ILSHS.31.27

ILSHS > ILSHS Volume 31 > Entrepreneurship and Industry Growth

< Back to Volume

Entrepreneurship and Industry Growth

Full Text PDF

Abstract:

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.

Info:

Periodical:

International Letters of Social and Humanistic Sciences (Volume 31)

Pages:

27-36

DOI:

https://doi.org/10.18052/www.scipress.com/ILSHS.31.27

Citation:

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:

June 2014

Authors:

Mohsen Mehrara, Abbas Ali Rezaei

Keywords:

Cobb-Douglas Function, Economic Growth, Endogenous Growth Model, Entrepreneurship, Physical Capital

Export:

RIS, BibTeX, Text

Distribution:

Open Access

This work is licensed under a
Creative Commons Attribution 4.0 International License

References:

Acs Z. J., Challenge 35 (1992) 38-44.

Acs Zoltan J., Catherine Armington (2002). Entrepreneurial Activity and Economic Growth: An Empirical Analysis, Paper prepared for the Kaufman Foundation.

Aghion P., P. Howitt, Econometrica 60 (1992) 323-351.

Aghion P., P. Howitt (1997). A Schumpeterian perspective on growth and competition, in D.M. Kreps and K.F. Wallis (eds. ), Advances in Economics and Econometrics: Theory and Applications, Vol. 2, Cambridge: Cambridge University Press, pp.279-317.

Aiginger K., G. Tichy, Small Business Economics 3 (1991) 83-101.

Audretsch D. B. (1995). Innovation and Industry Evolution, Cambridge, MA: MIT Press.

Audretsch D. B. (2000). Entrepreneurship in Germany, in D.L. Sexton and H. Landström (eds. ), The Blackwell Handbook of Entrepreneurship, Oxford: Blackwell Publishers.

Baumol W. J., American Economic Review 58 (1968) 64-71.

Baumol W. J., Journal of Political Economy 98 (1990) 893-921.

Baumol W. J., Journal of Business Venturing 8 (1993) 197-210.

Berkowitz D., J. Holland, Economics Letters 74 (2001) 53-60.

Carree M., A. van Stel, R. Thurik, S. Wennekers, Small Business Economics 19 (2002).

Carree M. A., Small Business Economics 18 (2002) 243-255.

Kristina N., Public Choice 136(3-4) (2008).

Mahnaz R. (2010). Effect of Innovation and Manpower on Economic Growth in Iran. Knowledge and Development (Danesh va Tosee) Magazine, 16th year, Issue 26.

Maria M., Moren L., Journal of Business Venturing 25(3) (2010).

Norman A., Borrelli (2008). Education and economic growth in the United States: cross-national applications for an intra-national path analysis Policy.

Robert G., King R. L., Journal of Monetary Economics 32(3) (1993).

Michael P. Todaro, Stephen C. Smith, Economic Development. 10th ed. Boston, MA: Addison Wesley, 2008. ( Received 07 June 2014; accepted 14 June 2014 ).

Show More Hide

Cited By:

This article has no citations.