The Economic Impact of Changes in Local Bank Presence
Iftekhar Hasan, Krzysztof Jackowicz, Oskar Kowalewski, Łukasz Kozłowski
Regional Studies,
Nr. 5,
2019
Abstract
This study analyzes the economic consequences of changes in the local bank presence. Using a unique data set of banks, firms and counties in Poland over the period 2009–14, it is shown that changes strengthening the relationship banking model are associated with local labour market improvements and easier small and medium-sized enterprise access to bank debt. However, only the appearance of new, more aggressive owners of large commercial banks stimulates new firm creation.
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20.02.2018 • 2/2018
Fernsehen aktiviert Unternehmergeist
Unternehmensgründungen schaffen Arbeitsplätze und treiben die Entwicklung einer Marktwirtschaft voran. Über welche Kanäle der Unternehmergeist in den Menschen aber überhaupt geweckt wird, damit beschäftigten sich Viktor Slavtchev, Ökonom am Leibniz-Institut für Wirtschafts-forschung Halle (IWH) und sein Co-Autor Michael Wyrwich in einer Studie. Ihr Ergebnis: Auch das Fernsehen kann die dafür passenden Werte vermitteln. Für ihre Analyse ver-glichen die Ökonomen die Unternehmensaktivität in ostdeutschen Regionen, die West-Fernsehen empfangen konnten, mit solchen, die diese Möglichkeit nicht hatten.
Viktor Slavtchev
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22.12.2017 • 42/2017
Polen am Scheideweg
Polen hat bislang einen recht erfolgreichen wirtschaftlichen Aufholprozess durchlaufen, der nun ins Stocken gerät. Der so genannte „Morawiecki-Plan“, den Oliver Holtemöller und Martina Kämpfe vom Leibniz-Institut für Wirtschafts-forschung Halle (IWH) nun genauer unter die Lupe nahmen, soll dem Aufholprozess wieder mehr Schwung verleihen. Ihr Fazit: Um nicht in der „Middle-Income-Trap“ zu landen, muss Polen innovative und junge Unternehmen stärker fördern und den Bildungssektor weiter ausbauen.
Oliver Holtemöller
Martina Kämpfe
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Measuring Entrepreneurial Businesses: Current Knowledge and Challenges
John Haltiwanger, Erik Hurst, Javier Miranda, Antoinette Schoar
NBER Studies in Income and Wealth,
2017
Abstract
Start-ups and other entrepreneurial ventures make a significant contribution to the US economy, particularly in the tech sector, where they comprise some of the largest and most influential companies. Yet for every startup that becomes a high-profile, high-growth company like Apple, Facebook, Microsoft, and Google, many more fail. This enormous heterogeneity poses conceptual and measurement challenges for economists concerned with understanding how new businesses affect economic growth.
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TV and Entrepreneurship
Viktor Slavtchev, Michael Wyrwich
IWH Discussion Papers,
Nr. 17,
2017
Abstract
We empirically analyse whether television (TV) can influence entrepreneurial identity and incidence. To identify causal effects, we utilise a quasi-natural experiment setting. During the division of Germany after WWII into West Germany with a free-market economy and the socialistic East Germany with centrally-planned economy, some East German regions had access to West German public TV that – differently from the East German TV – transmitted images, values, attitudes and view of life compatible with the free-market economy principles and supportive of entrepreneurship. We show that during the 40 years of socialistic regime in East Germany entrepreneurship was highly regulated and virtually impossible and that the prevalent formal and informal institutions broke the traditional ties linking entrepreneurship to the characteristics of individuals so that there were hardly any differences in the levels and development of entrepreneurship between East German regions with and without West German TV signal. Using both, regional and individual level data, we show then that, for the period after the Unification in 1990 which made starting an own business in East Germany, possible again, entrepreneurship incidence is higher among the residents of East German regions that had access to West German public TV, indicating that TV can, while transmitting specific images, values, attitudes and view of life, directly impact on the entrepreneurial mindset of individuals. Moreover, we find that young individuals born after 1980 in East German households that had access to West German TV are also more entrepreneurial. These findings point to second-order effects due to inter-personal and inter-generational transmission, a mechanism that can cause persistent differences in the entrepreneurship incidence across (geographically defined) population groups.
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Taking the Leap: The Determinants of Entrepreneurs Hiring Their First Employee
Robert W. Fairlie, Javier Miranda
Journal of Economics and Management Strategy,
Nr. 1,
2017
Abstract
Job creation is one of the most important aspects of entrepreneurship, but we know relatively little about the hiring patterns and decisions of start‐ups. Longitudinal data from the Integrated Longitudinal Business Database (iLBD), Kauffman Firm Survey (KFS), and the Growing America through Entrepreneurship (GATE) experiment are used to provide some of the first evidence in the literature on the determinants of taking the leap from a nonemployer to employer firm among start‐ups. Several interesting patterns emerge regarding the dynamics of nonemployer start‐ups hiring their first employee. Hiring rates among the universe of nonemployer start‐ups are very low, but increase when the population of nonemployers is focused on more growth‐oriented businesses such as incorporated and employer identification number businesses. If nonemployer start‐ups hire, the bulk of hiring occurs in the first few years of existence. After this point in time, relatively few nonemployer start‐ups hire an employee. Focusing on more growth‐ and employment‐oriented start‐ups in the KFS, we find that Asian‐owned and Hispanic‐owned start‐ups have higher rates of hiring their first employee than white‐owned start‐ups. Female‐owned start‐ups are roughly 10 percentage points less likely to hire their first employee by the first, second, and seventh years after start‐up. The education level of the owner, however, is not found to be associated with the probability of hiring an employee. Among business characteristics, we find evidence that business assets and intellectual property are associated with hiring the first employee. Using data from the largest random experiment providing entrepreneurship training in the United States ever conducted, we do not find evidence that entrepreneurship training increases the likelihood that nonemployers hire their first employee.
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Finanzmarktwissen bei Selbstständigen besonders ausgeprägt
Aida Ćumurović, Walter Hyll
Wirtschaft im Wandel,
Nr. 3,
2016
Abstract
Unternehmerische Aktivität ist ein dynamischer Treiber wirtschaftlicher Entwicklung. Finanzmarktwissen befähigt Individuen zu einer besseren Abwägung von Chancen und Risiken. In diesem Beitrag wird geprüft, ob ein höheres Maß an Finanzmarktwissen auch einen Einfluss auf die Entscheidung hat, sich selbstständig zu machen. Dieser Zusammenhang wird auf der Basis von Umfragedaten für Deutschland empirisch bestätigt.
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Where Has All the Skewness Gone? The Decline in High-growth (Young) Firms in the U.S.
Ryan A. Decker, John Haltiwanger, Ron S. Jarmin, Javier Miranda
European Economic Review,
July
2016
Abstract
The pace of business dynamism and entrepreneurship in the U.S. has declined over recent decades. We show that the character of that decline changed around 2000. Since 2000 the decline in dynamism and entrepreneurship has been accompanied by a decline in high-growth young firms. Prior research has shown that the sustained contribution of business startups to job creation stems from a relatively small fraction of high-growth young firms. The presence of these high-growth young firms contributes to a highly (positively) skewed firm growth rate distribution. In 1999, a firm at the 90th percentile of the employment growth rate distribution grew about 31 percent faster than the median firm. Moreover, the 90−50 differential was 16 percent larger than the 50−10 differential reflecting the positive skewness of the employment growth rate distribution. We show that the shape of the firm employment growth distribution changes substantially in the post-2000 period. By 2007, the 90−50 differential was only 4 percent larger than the 50−10, and it continued to exhibit a trend decline through 2011. The overall decline reflects a sharp drop in the 90th percentile of the growth rate distribution accounted for by the declining share of young firms and the declining propensity for young firms to be high-growth firms.
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Taxation, Corruption, and Growth
Philippe Aghion, Ufuk Akcigit, Julia Cagé, William R. Kerr
European Economic Review,
2016
Abstract
We build an endogenous growth model to analyze the relationships between taxation, corruption, and economic growth. Entrepreneurs lie at the center of the model and face disincentive effects from taxation but acquire positive benefits from public infrastructure. Political corruption governs the efficiency with which tax revenues are translated into infrastructure. The model predicts an inverted-U relationship between taxation and growth, with corruption reducing the optimal taxation level. We find evidence consistent with these predictions and the entrepreneurial channel using data from the Longitudinal Business Database of the US Census Bureau. The marginal effect of taxation for growth for a state at the 10th or 25th percentile of corruption is significantly positive; on the other hand, the marginal effects of taxation for growth for a state at the 90th percentile of corruption are much lower across the board. We make progress towards causality through Granger-style tests and by considering periphery counties where effective tax policy is largely driven by bordering states. Finally, we calibrate our model and find that the calibrated taxation rate of 37% is fairly close to the model׳s estimated welfare maximizing taxation rate of 42%. Reducing corruption provides the largest potential impact for welfare gain through its impact on the uses of tax revenues.
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Declining Business Dynamism: What We Know and the Way Forward
Ryan A. Decker, John Haltiwanger, Ron S. Jarmin, Javier Miranda
American Economic Review: Papers and Proceedings,
Nr. 5,
2016
Abstract
A growing body of evidence indicates that the U.S. economy has become less dynamic in recent years. This trend is evident in declining rates of gross job and worker flows as well as declining rates of entrepreneurship and young firm activity, and the trend is pervasive across industries, regions, and firm size classes. We describe the evidence on these changes in the U.S. economy by reviewing existing research. We then describe new empirical facts about the relationship between establishment-level productivity and employment growth, framing our results in terms of canonical models of firm dynamics and suggesting empirically testable potential explanations.
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