THE RELATIONSHIP BETWEEN SELF-EMPLOYMENT AND ECONOMIC DEVELOPMENT

The shape of the relationship between self-employment and economic development is a hotly debated issue. This paper contributes to the line of research by examining the relationship between self-employment and economic development for a panel of 29 countries over 39 years using panel data analysis t...

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Bibliographic Details
Published inSouthwestern economic review Vol. 46; pp. 59 - 85
Main Author Nica, Mihai
Format Journal Article
LanguageEnglish
Published Canyon West Texas A&M University, College of Business 01.01.2019
Subjects
Business ownership
Datasets
Economic development
Economic growth
Economic models
Economic theory
Entrepreneurs
Entrepreneurship
Income inequality
Labor force
Per capita
Self employment
Small business
Studies
Trends
United States > US
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Summary:The shape of the relationship between self-employment and economic development is a hotly debated issue. This paper contributes to the line of research by examining the relationship between self-employment and economic development for a panel of 29 countries over 39 years using panel data analysis techniques. No clear evidence of a U-shaped relationship was found. A robust, negative linear relationship seems to describe the relationship the best. Interestingly, the study also found that the business ownership rate is converging toward a common value with a convergence speed of about 5.5% per year. JEL Classification: L26, L51, M13
ISSN:1941-7683
1941-7691