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Rural America’s stagnant economic performance: What’s the role of declining dynamism

AEI 2020.03.04
Economic growth in the United States has slowed in recent decades, but the negative effects have been especially severe in rural America. Although some rural communities continue to prosper, much of rural America has faced stagnant economic conditions. One possible cause of declining economic growth is declining economic “dynamism” manifested through long-running trends such as fewer firm startups and deaths, declining entrepreneurship and innovation that leads to lower productivity growth, sclerotic labor markets, and less product market competition.

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