Featured Research

from universities, journals, and other organizations

Entrepreneurial Activity Affected By Degree Of States' Economic Freedom

Date:
October 15, 2008
Source:
Wiley-Blackwell
Summary:
A new study in the journal Entrepreneurship Theory and Practice examines how entrepreneurial activity and level of employment in US service industries respond to changes in the degree of economic freedom among states.

A new study in the journal Entrepreneurship Theory and Practice examines how entrepreneurial activity and level of employment in U.S. service industries respond to changes in the degree of economic freedom among states. Researchers found that the relationship between entrepreneurial outcomes and economic freedom varies significantly by industry.

Stephan F. Gohmann, Bradley K. Hobbs, and Myra McCrickard used data from economic freedom indexes for each state in the U.S. and from the U.S. Census Bureau to examine the effects of economic freedom on industry growth rates.

Results present the following dichotomy: some service industries exhibit firm and employment growth as economic freedom rises while other service industries grow as economic freedom declines.

For example, business and personal services firms are relatively small, and states with greater economic freedom typically have fewer regulations that lower the costs for smaller firms. Consequently, entrepreneurs are more able to grow these services during times of increased economic freedom.

Conversely, legal services grow in response to decreased economic freedom and heightened government regulation because firms affected by these policies increasingly require legal services. Similarly, health and social services respond to demand generated from government programs and grow as the government’s purview broadens.

As such results relate to government policy, the authors conclude that: “Policy makers should consider both the spillover effects of targeted policies as well as the direct effects of changes in economic freedom on entrepreneurial decision making.”


Story Source:

The above story is based on materials provided by Wiley-Blackwell. Note: Materials may be edited for content and length.


Journal Reference:

  1. Gohmann et al. Economic Freedom and Service Industry Growth in the United States. Entrepreneurship Theory and Practice, 2008; 32 (5): 855 DOI: 10.1111/j.1540-6520.2008.00259.x

Cite This Page:

Wiley-Blackwell. "Entrepreneurial Activity Affected By Degree Of States' Economic Freedom." ScienceDaily. ScienceDaily, 15 October 2008. <www.sciencedaily.com/releases/2008/10/081015130642.htm>.
Wiley-Blackwell. (2008, October 15). Entrepreneurial Activity Affected By Degree Of States' Economic Freedom. ScienceDaily. Retrieved August 20, 2014 from www.sciencedaily.com/releases/2008/10/081015130642.htm
Wiley-Blackwell. "Entrepreneurial Activity Affected By Degree Of States' Economic Freedom." ScienceDaily. www.sciencedaily.com/releases/2008/10/081015130642.htm (accessed August 20, 2014).

Share This




More Science & Society News

Wednesday, August 20, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Breakingviews: Ebola's Economic Impact Could Eclipse SARS

Breakingviews: Ebola's Economic Impact Could Eclipse SARS

Reuters - Business Video Online (Aug. 18, 2014) The virus ravaging Africa has yet to spread elsewhere. Yet Asia’s SARS crisis in 2003 showed how changes to behaviour can hurt the economy more than the actual disease, says Breakingviews' Una Galani. Video provided by Reuters
Powered by NewsLook.com
USDA Cracks Down On Imports From Foreign Puppy Mills

USDA Cracks Down On Imports From Foreign Puppy Mills

Newsy (Aug. 18, 2014) New USDA measures to regulate dog imports aim to crack down on buying dogs from overseas puppy mills. Video provided by Newsy
Powered by NewsLook.com
Health Workers in Sierra Leone Risk Lives to Battle Ebola

Health Workers in Sierra Leone Risk Lives to Battle Ebola

AFP (Aug. 18, 2014) Sierra Leone has lost 32 nurses since the end of May to the Ebola virus, an epidemic that's now claimed 1,145 lives in west Africa. Duration: 02:14 Video provided by AFP
Powered by NewsLook.com
Raising A Kid Costs $245,000 On Average

Raising A Kid Costs $245,000 On Average

Newsy (Aug. 18, 2014) Guardians could pay nearly a quarter of a million dollars on their children before they step foot on a college campus. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:
from the past week

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins