Do Specific Growth Drivers Exist for Firms? A Regional Analysis of Start-ups and Industrial Growth

• Main Author: PAUL I. OJEAGA
• Format: Article
• Language: English
• Published: Nicolae Titulescu University 2016-06-01
• Series: Global Economic Observer
• Subjects: Political Economy; Quantitative Economics; Start-Ups; Entrepreneurship; Industrial Economics
• Online Access: http://www.globeco.ro/wp-content/uploads/vol/split/vol_4_no_1/geo_2016_vol4_no1_art_013.pdf

The study of start-ups, have remained largely a micro economic issue. Firms are the key drivers of industrial sector GDP (or enterprise growth) in countries across regions. Few studies have tried to examine the consequence of start-ups in the broad macroeconomics terms on enterprise growth in general with special emphasis on industrial sector output. This study provides a macroeconomic study of the effect of start- ups on industrial sector growth for countries in some specific geographical regions of the world. Panel data is utilized due to it obvious advantages such its ability to utilize a panel of short time frames and its suitability for controlling for omitted variable bias and unobservable heterogeneity across regions. The results show that start-ups remain an intrinsic variable for enterprise growth and industrial sector output discussion in general.