Is there a correlation between GDP per capita growth and start-up rates in urban and rural regions? Dr Christian Dienes, Dr Stefan Schneck and Hans-Jürgen Wolter examine this question in their current working paper "Regional Entrepreneurship: Pain or Gain for Economic Growth?".
Their results suggest that the establishment of new businesses is positively associated with economic growth in rural areas. In urban districts, however, the effect of start-up activity is insignificant. Therefore, regional development is less dependent on the emergence of new businesses in urban counties.
