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Local business ownership and local economic performance: evidence from US counties

ABSTRACT Local business ownership and local economic performance: evidence from US counties. Regional Studies. A rich US county-level dataset is utilized to obtain a statistical characterization of the relationship between the size of the local-based business sector and local economic performance. The study also disaggregates the local businesses sector by establishment size. The results do not provide conclusive evidence that the size of the local businesses sector is positively and significantly associated with local economic performance. The disaggregated results show some evidence of a significant and positive association of smaller local businesses with local economic performance compared with larger local businesses.