Linking Entrepreneurship and Economic Growth in Sweden, 1850–2000
2016 (English)In: Contemporary Entrepreneurship: Multidisciplinary Perspectives on Innovation and Growth / [ed] Dieter Bögenhold, Jean Bonnet, Marcus Dejardin, Domingo Garcia Pérez de Lema, Cham: Springer, 2016, 1, 31-49 p.Chapter in book (Refereed)
Recent developments in entrepreneurship suggest a causal link between entrepreneurial activity and economic growth: entrepreneurship precedes economic growth. A positive effect from entrepreneurship on economic development in advanced, innovation-driven economies in the most recent decades is often maintained. Self-employment is one of the most common indicators of entrepreneurship. The present study uses very long series of non-interrupted data on self-employment in Sweden (1850–2000). It analyzes the relationship between variations in self-employment and economic growth. For the entire period, variations in self-employment had a significant, instantaneous positive correlation with GDP growth. However, no causal relationship could be discovered: variations in self-employment did not (Granger) cause GDP growth. We discovered a structural break in GDP growth as early as in the year of 1948. Up until 1948, (Granger) causality between self-employment and GDP could not be established for any direction. For the other segment (1949–2000), GDP growth (Granger) caused self-employment growth, but not the other way around. For the period 1949–2000, but not for the previous period, selfemployment lagged with respect to GDP growth. Consequently, GDP growth preceded self-employment growth, but self-employment growth did not precede GDP growth. Given that self-employment is a suitable indicator, the empirical results in this study are, in several respects, in disagreement with dominating assumptions in mainstream research.
Place, publisher, year, edition, pages
Cham: Springer, 2016, 1. 31-49 p.
Entrepreneurship, Self-employment, Economic growth, Granger causality, Sweden
Economic History Economics
Research subject Politics, Economy and the Organization of Society
IdentifiersURN: urn:nbn:se:sh:diva-30319DOI: 10.1007/978-3-319-28134-6_3ScopusID: 2-s2.0-84978199995Local ID: 1390/42/2012ISBN: 978-3-319-28132-2ISBN: 978-3-319-28134-6OAI: oai:DiVA.org:sh-30319DiVA: diva2:936887
ProjectsEntrepreneurship, Innovation, and the Demography of Firms and Industries in Sweden over Two Centuries
FunderRiksbankens Jubileumsfond, P12-1122:1