Mediating Role of Entrepreneurship in Explaining the Association Between Income Inequality and Regional Economic Performance

《Mediating Role of Entrepreneurship in Explaining the Association Between Income Inequality and Regional Economic Performance》

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关键字: income inequality; entrepreneurship; economic performance; KNOWLEDGE-SPILLOVER ENTREPRENEURSHIP; GREAT RECESSION; UNITED-STATES; MARKET-SIZE; GROWTH; INNOVATION; DIVERSITY; IMPACT; AGGLOMERATION; PRODUCTIVITY

作者单位: [Jung, Hyejin] Korea Univ Technol & Educ, Cheonan, South Korea. [Seo, Inseok] Anyang Univ, Dept Publ Adm, Anyang, South Korea. [Jung, Kyujin] Sungkyunkwan Univ, Dept Publ Adm, 25-2 Sungkyunkwan Ro, Seoul 03063, South Korea. [Jung, Kyujin] Sungkyunkwan Univ, Graduae Sch Governance, Seoul, South Korea. Jung, K (reprint author), Sungkyunkwan Univ, Dept Publ Adm, 25-2 Sungkyunkwan Ro, Seoul 03063, South Korea. E-Mail: kjung1@skku.edu

摘要: This research aims to examine whether income inequality affects economic performance at the regional level, which is mediated by entrepreneurship. By considering hierarchical preferences in consumption, it assumes that income inequality has a negative influence on regional economic growth because it lowers the incentive to innovate. Using a structural equation model, the effect of income inequality on regional economic performance, as well as the mediating effect of entrepreneurship, is tested. The results show that income inequality negatively affects both entrepreneurship and economic growth. This result suggests that insufficient demand for new products/services hampers entrepreneurial activities as well as regional economic performance. The findings contribute to the field, highlighting that entrepreneurship mediates between income inequality and economic performance based on demands.