IDEAS home Printed from https://ideas.repec.org/a/spr/jglont/v8y2018i1d10.1186_s40497-018-0138-y.html
   My bibliography  Save this article

An empirical investigation of country level efficiency and national systems of entrepreneurship using Data Envelopment Analysis (DEA) and the TOBIT model

Author

Listed:
  • Nishat Tasnim

    (Shahjalal University of Science and Technology (SUST))

  • Munshi Naser Ibne Afzal

    (Shahjalal University of Science and Technology (SUST)
    University of Southern Queensland
    HBMSU)

Abstract

The goal of this paper is to investigate effects of national systems of entrepreneurship on the country level efficiency, on addition we find what macro factors affect efficiency as well. From a comprehensive database of 59 countries using GEM, WDI, WCI for 2018 using data envelopment analysis (DEA) we find the results support the theoretical grounding of Global Entrepreneurship Index (GEI) hypothesis. The GEI methodology has been designed to capture the core features of the National Systems of Entrepreneurship theory. It approaches country-level entrepreneurship as a systemic phenomenon, which is driven by the interaction between individual-level actions and country-level framework conditions. While discussing country level framework, we have depicted key macroeconomic indicators in the analysis along with GEI index. The DEA analysis followed this framework to assess the performance of the study countries. Though inefficiency widely varies across countries, while the group of factor-driven countries is the most inefficient while innovation-driven economies are the most efficient ones. Subsequently, we apply the Tobit model to explain efficiency. Based on the Tobit regression model, the DEA VRS technical efficient score could be improved through GDP per capita and social capital. From policy perspective, to promote economic growth policy makers should consider national systems of entrepreneurship as their priority so that entrepreneurs can allocate resources in the economy effectively.

Suggested Citation

  • Nishat Tasnim & Munshi Naser Ibne Afzal, 2018. "An empirical investigation of country level efficiency and national systems of entrepreneurship using Data Envelopment Analysis (DEA) and the TOBIT model," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-17, December.
    • Handle: RePEc:spr:jglont:v:8:y:2018:i:1:d:10.1186_s40497-018-0138-y
    DOI: 10.1186/s40497-018-0138-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40497-018-0138-y
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40497-018-0138-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. William W. Cooper & Lawrence M. Seiford & Joe Zhu (ed.), 2011. "Handbook on Data Envelopment Analysis," International Series in Operations Research and Management Science, Springer, number 978-1-4419-6151-8, September.
    2. Blanchflower, David G., 2000. "Self-employment in OECD countries," Labour Economics, Elsevier, vol. 7(5), pages 471-505, September.
    3. Yasser Abdih & Frederick Joutz, 2006. "Relating the Knowledge Production Function to Total Factor Productivity: An Endogenous Growth Puzzle," IMF Staff Papers, Palgrave Macmillan, vol. 53(2), pages 1-3.
    4. Djankov, Simeon & Glaeser, Edward & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2003. "The new comparative economics," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 595-619, December.
    5. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355, March.
    6. Zoltán J. Ács & Erkko Autio & László Szerb, 2015. "National Systems of Entrepreneurship: Measurement issues and policy implications," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 28, pages 523-541, Edward Elgar Publishing.
    7. Robert J. Barro, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 106(2), pages 407-443.
    8. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    9. Mircea Epure & Esteban Lafuente, 2015. "Monitoring bank performance in the presence of risk," Journal of Productivity Analysis, Springer, vol. 44(3), pages 265-281, December.
    10. Bernard Yeung & Randall Morck & Daniel Wolfenzon, 2004. "Corporate Governance, Economic Entrenchment and Growth," Working Papers 04-21, New York University, Leonard N. Stern School of Business, Department of Economics.
    11. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    12. Zoltan J. Acs & David B. Audretsch, 2008. "Innovation in Large and Small Firms: An Empirical Analysis," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 1, pages 3-15, Edward Elgar Publishing.
    13. C. Praag & Peter Versloot, 2007. "What is the value of entrepreneurship? A review of recent research," Small Business Economics, Springer, vol. 29(4), pages 351-382, December.
    14. Munshi Naser Ibne Afzal, 2014. "An empirical investigation of the National Innovation System (NIS) using Data Envelopment Analysis (DEA) and the TOBIT model," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(4), pages 507-523, July.
    15. Pekka Stenholm & Zoltán J. Ács & Robert Wuebker, 2015. "Exploring country-level institutional arrangements on the rate and type of entrepreneurial activity," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 20, pages 387-404, Edward Elgar Publishing.
    16. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521899604, March.
    17. E. Grifell-Tatjé & C. A. K. Lovell, 1999. "Profits and Productivity," Management Science, INFORMS, vol. 45(9), pages 1177-1193, September.
    18. Paul Reynolds & Niels Bosma & Erkko Autio & Steve Hunt & Natalie De Bono & Isabel Servais & Paloma Lopez-Garcia & Nancy Chin, 2005. "Global Entrepreneurship Monitor: Data Collection Design and Implementation 1998–2003," Small Business Economics, Springer, vol. 24(3), pages 205-231, February.
    19. Jean‐Philippe Boussemart & Walter Briec & Kristiaan Kerstens & Jean‐Christophe Poutineau, 2003. "Luenberger and Malmquist Productivity Indices: Theoretical Comparisons and Empirical Illustration," Bulletin of Economic Research, Wiley Blackwell, vol. 55(4), pages 391-405, October.
    20. Mahlberg, Bernhard & Sahoo, Biresh K., 2011. "Radial and non-radial decompositions of Luenberger productivity indicator with an illustrative application," International Journal of Production Economics, Elsevier, vol. 131(2), pages 721-726, June.
    21. Pontus Braunerhjelm & Zoltán J. Ács & David B. Audretsch & Bo Carlsson, 2015. "The missing link: knowledge diffusion and entrepreneurship in endogenous growth," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 6, pages 108-128, Edward Elgar Publishing.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Panagiotis Mitropoulos & Alexandros Mitropoulos, 2023. "Evaluating efficiency and technology gaps of the national systems of entrepreneurship using stochastic DEA and club convergence," Operational Research, Springer, vol. 23(1), pages 1-28, March.
    2. Svetlana V. Ratner & Svetlana A. Balashova & Andrey V. Lychev, 2022. "The Efficiency of National Innovation Systems in Post-Soviet Countries: DEA-Based Approach," Mathematics, MDPI, vol. 10(19), pages 1-23, October.
    3. Ebrahim Bonyadi & Lida Sarreshtehdari, 2021. "The Global Entrepreneurship Index (GEI): a critical review," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 469-488, December.
    4. Sehoon Kim, 2022. "A Global Entrepreneurship Efficiency Benchmarking and Comparison Study based on National Systems of Entrepreneurship and Early-Stage Business: A Data Envelopment Analysis Approach," SAGE Open, , vol. 12(3), pages 21582440221, September.
    5. Jorge Antunes & Goodness C. Aye & Rangan Gupta & Peter Wanke & Yong Tan, 2020. "Endogenous Long-Term Productivity Performance in Advanced Countries: A Novel Two-Dimensional Fuzzy-Monte Carlo Approach," Working Papers 2020111, University of Pretoria, Department of Economics.
    6. Mohamed Mehdi Jelassi & Ezzeddine Delhoumi, 2021. "What explains the technical efficiency of banks in Tunisia? Evidence from a two-stage data envelopment analysis," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 7(1), pages 1-26, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esteban Lafuente & László Szerb & Zoltan J. Acs, 2016. "Country level efficiency and national systems of entrepreneurship: a data envelopment analysis approach," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1260-1283, December.
    2. Zoltán J. Ács & Erkko Autio & László Szerb, 2015. "National Systems of Entrepreneurship: Measurement issues and policy implications," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 28, pages 523-541, Edward Elgar Publishing.
    3. Zoltan J. Acs & Saul Estrin & Tomasz Mickiewicz & László Szerb, 2018. "Entrepreneurship, institutional economics, and economic growth: an ecosystem perspective," Small Business Economics, Springer, vol. 51(2), pages 501-514, August.
    4. Esteban Lafuente & Zoltan J. Acs & Mark Sanders & László Szerb, 2020. "The global technology frontier: productivity growth and the relevance of Kirznerian and Schumpeterian entrepreneurship," Small Business Economics, Springer, vol. 55(1), pages 153-178, June.
    5. Sehoon Kim, 2022. "A Global Entrepreneurship Efficiency Benchmarking and Comparison Study based on National Systems of Entrepreneurship and Early-Stage Business: A Data Envelopment Analysis Approach," SAGE Open, , vol. 12(3), pages 21582440221, September.
    6. Hien Thu Tran & Enrico Santarelli, 2017. "Spatial heterogeneity, industry heterogeneity, and entrepreneurship," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(1), pages 69-100, July.
    7. Ivana Komarkova & Dimitri Gagliardi & Johannes Conrads & Antonio Collado, 2015. "Entrepreneurship Competence: An Overview of Existing Concepts, Policies and Initiatives – Final report," JRC Research Reports JRC96531, Joint Research Centre.
    8. Acs, Zoltan J. & Estrin, Saul & Mickiewicz, Tomasz & Szerb, László, 2014. "The Continued Search for the Solow Residual: The Role of National Entrepreneurial Ecosystem," IZA Discussion Papers 8652, Institute of Labor Economics (IZA).
    9. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 45-61.
    10. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    11. Joern Block & Roy Thurik & Haibo Zhou, 2013. "What turns knowledge into innovative products? The role of entrepreneurship and knowledge spillovers," Journal of Evolutionary Economics, Springer, vol. 23(4), pages 693-718, September.
    12. Pontus Braunerhjelm & Ding Ding & Per Thulin, 2016. "Labour as a knowledge carrier: how increased mobility influences entrepreneurship," The Journal of Technology Transfer, Springer, vol. 41(6), pages 1308-1326, December.
    13. Francesco Ceresia, 2018. "The Role of Entrepreneurship Education in Fostering Entrepreneurial Intentions and Performances: A Review of 30 Years of Research," Revista Equidad y Desarrollo, Universidad de la Salle, issue 31, pages 47-66, June.
    14. Félix Modrego & Philip McCann & William Foster & M. Olfert, 2015. "Regional entrepreneurship and innovation in Chile: a knowledge matching approach," Small Business Economics, Springer, vol. 44(3), pages 685-703, March.
    15. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    16. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
    17. Paul A. Coomes & Jose Fernandez & Stephan F. Gohmann, 2013. "The Rate of Proprietorship Among Metropolitan Areas: The Impact of the Local Economic Environment and Capital Resources," Entrepreneurship Theory and Practice, , vol. 37(4), pages 745-770, July.
    18. Joern H. Block & Christian O. Fisch & Mirjam van Praag, 2017. "The Schumpeterian entrepreneur: a review of the empirical evidence on the antecedents, behaviour and consequences of innovative entrepreneurship," Industry and Innovation, Taylor & Francis Journals, vol. 24(1), pages 61-95, January.
    19. Marcus Box & Karl Gratzer & Xiang Lin, 2023. "Self-employment, corruption, and property rights: a comparative analysis of European and CEE economies," SN Business & Economics, Springer, vol. 3(1), pages 1-29, January.
    20. Niels Bosma & Jeroen Content & Mark Sanders & Erik Stam, 2018. "Institutions, entrepreneurship, and economic growth in Europe," Small Business Economics, Springer, vol. 51(2), pages 483-499, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jglont:v:8:y:2018:i:1:d:10.1186_s40497-018-0138-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.