Abstract
This study examines the effect of small business loans on subsequent establishment births in U.S. counties. Using an economic growth framework and cross-sectional empirical model, we test the hypothesis that the establishment birth rate is higher in counties where the level and annual increase in lending is greater, controlling for community-level characteristics affecting business and economic dynamics. We also consider the long-term effect of small business lending and focus on establishing the appropriate lag structure. The results indicate that small business lending does generally have a positive effect on the employer establishment birth rate that is strongest in nonmetropolitan (rural) counties. (JEL L26, R11, M13).
Original language | English (US) |
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Pages (from-to) | 578-595 |
Number of pages | 18 |
Journal | Contemporary Economic Policy |
Volume | 35 |
Issue number | 3 |
DOIs | |
State | Published - Jul 2017 |
Externally published | Yes |
ASJC Scopus subject areas
- General Business, Management and Accounting
- Economics and Econometrics
- Public Administration