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Entrepreneurship and Economic Performance in Africa: A Sectoral Analysis with Focus on the Role of Finance, Institutions and Globalization

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  • John Bosco Nnyanzi
  • Bruno L. Yawe
  • John Ddumba-Ssentamu

Abstract

The main aim of the paper was to investigate the role of entrepreneurship on economic performance but with focus on sector-wide growth in 12 selected African countries during the period 2006-2016. Overall, the results suggest that while the quantitative impact of entrepreneurship on economic growth is positively significant, there is a differential effect on the sectors. The service sector in particular is associated positively with entrepreneurship whereas there is no evidence in the data that the growth in the manufacturing and agriculture sectors is influenced by entrepreneurship activities. A further analysis that includes interactions in the model supports the conditionality hypothesis that globalization as well as the quality of institutions and financial development matter in the entrepreneurship-growth nexus. In addition, while internet access and government consumption appear beneficial for the manufacturing and service sectors, the role of personal remittances is observed important for the agriculture sector contribution to GDP whereas trade in services matters for each sector but most significantly in the latter sector. In light of the findings policy recommendations are suggested.

Suggested Citation

  • John Bosco Nnyanzi & Bruno L. Yawe & John Ddumba-Ssentamu, 2019. "Entrepreneurship and Economic Performance in Africa: A Sectoral Analysis with Focus on the Role of Finance, Institutions and Globalization," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(1), pages 37-55, January.
    • Handle: RePEc:ibn:ijefaa:v:11:y:2019:i:1:p:37-55
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    Keywords

    Islamic bank; Murabaha; Fiqh; accounting; AAOIFI; disclosure;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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