Does Venture Capital Investment Spur Employment Growth?

38 Pages Posted: 2 May 2003

See all articles by Ansgar Hubertus Belke

Ansgar Hubertus Belke

University of Duisburg-Essen - Department of Economics and Business Administration; IZA Institute of Labor Economics; Centre for European Policy Studies

Rainer Fehn

CESifo (Center for Economic Studies and Ifo Institute)

Neil Foster-McGregor

UNU-MERIT

Date Written: April 2003

Abstract

Anglo-Saxon countries have been successful in the 1990s concerning labor market performance compared to the former role models Germany and Japan. This reversal in relative economic performance might be related to idiosyncrasies in financial markets, with bank-based financial markets as in Germany and Japan being possibly inferior to stockmarket-based financial markets in turbulent times and when approaching the economic frontier. A cleavage is related to venture capital markets which are flourishing on Anglo-Saxon but not on German type financial markets. Venture capital is crucial for financing structural change, new firms and innovations and therefore possibly also nowadays for employment growth.

Keywords: Labor Markets, Venture Capital, Unemployment, New Economy, Panel Data Analysis

JEL Classification: E22, E24, E44, G24, G32

Suggested Citation

Belke, Ansgar Hubertus and Fehn, Rainer and Foster-McGregor, Neil, Does Venture Capital Investment Spur Employment Growth? (April 2003). Available at SSRN: https://ssrn.com/abstract=400200

Ansgar Hubertus Belke

University of Duisburg-Essen - Department of Economics and Business Administration ( email )

Universitätsstr. 9
Essen, 45141
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Centre for European Policy Studies ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

Rainer Fehn (Contact Author)

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Neil Foster-McGregor

UNU-MERIT ( email )

Keizer Karelplein 19
Maastricht, 6211TC
Netherlands

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