Assessing the Effects of Small Business Activity on West Virginia’s Mining Counties
DOI:
https://doi.org/10.47611/jsrhs.v13i3.7242Keywords:
Small Businesses, West Virginia, Economic Growth, Mining CountiesAbstract
This study analyzes the effects of small business activity on economic growth in West Virginia’s mining counties. These counties have historically suffered due to a lack of economic diversity, which has exacerbated the negative impacts of coal busts, as there are no businesses to absorb the shock when the prices of coal plummet and mining companies lose significant sums. This study utilizes a panel regression to assess the impact of small business activity on the growth of Gross County Product, Total County Employment, and Personal County Income. This study also controls for determinants of economic growth, such as manufacturing wage, unemployment rate, college education rate, and population density. The study fails to find reliable evidence that an increase in small business activity boosts economic growth, with few exceptions. The study finds a correlation between lower fluctuation of growth rates and an increase in each economic indicator’s growth rates.
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