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The role of entrepreneurship in stimulating economic growth in developed and developing countries

Author

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  • Justin Doran
  • Nóirín McCarthy
  • Marie O’Connor

Abstract

This paper analyses whether different measure of entrepreneurship can explain economic growth. It utilises 14 difference indicators of entrepreneurship to analyse the contribution of entrepreneurial activity, aspirations, and attitudes to Gross Domestic Product (GDP) per capita. It also examines whether the importance of entrepreneurship varies across high-income and middle/low-income countries. An unbalanced panel of 55 countries over the time period 2004–2011 is used. Fourteen different indicators of entrepreneurship are utilised and are condensed into three components using principle components analysis. Regression analysis is then used to assess whether these three different components of entrepreneurship drive economic growth. The results indicate that entrepreneurial attitudes are found to stimulate GDP per capita in high-income countries while entrepreneurial activity is found to have a negative effect in middle/low-income economies.

Suggested Citation

  • Justin Doran & Nóirín McCarthy & Marie O’Connor, 2018. "The role of entrepreneurship in stimulating economic growth in developed and developing countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1442093-144, January.
  • Handle: RePEc:taf:oaefxx:v:6:y:2018:i:1:p:1442093
    DOI: 10.1080/23322039.2018.1442093
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    Cited by:

    1. Silva, Pedro Mendonça & Moutinho, Victor Ferreira & Moreira, António Carrizo, 2022. "Do social and economic factors affect the technical efficiency in entrepreneurship activities? Evidence from European countries using a two-stage DEA model," Socio-Economic Planning Sciences, Elsevier, vol. 82(PB).
    2. Steven Deller & Brian Whitacre & Tessa Conroy, 2022. "Rural broadband speeds and business startup rates," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 999-1025, May.
    3. Nezameddin Faghih & Ebrahim Bonyadi & Lida Sarreshtehdari, 2021. "Assessing the entrepreneurship process: an application of the data envelopment analysis," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 311-327, December.
    4. Rabinder Singh & Rajani Kumari Sarangal & Gurmeet Singh, 2022. "The Impact of Micro and Macro Environment on Entrepreneurial Success: Case of J&K MSMEs," FIIB Business Review, , vol. 11(1), pages 94-106, March.
    5. Samuel Mayanja & Joseph M. Ntayi & John C. Munene & Waswa Balunywa & James R. K. Kagaari, 2021. "Informational differences and entrepreneurial networking among small and medium enterprises in Uganda," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 563-577, December.
    6. Jean-Philippe Boussemart & Hervé Leleu & Zhiyang Shen & Vivian Valdmanis, 2020. "Performance analysis for three pillars of sustainability," Journal of Productivity Analysis, Springer, vol. 53(3), pages 305-320, June.
    7. Svetlana Zenchenko & Wadim Strielkowski & Luboš Smutka & Tomáš Vacek & Yana Radyukova & Vladislav Sutyagin, 2022. "Monetization of the Economies as a Priority of the New Monetary Policy in the Face of Economic Sanctions," JRFM, MDPI, vol. 15(3), pages 1-18, March.
    8. Ahmad Fathi Alheet, 2019. "Investigating the relationship between entrepreneurial activity and economic growth: a case of Middle East," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1036-1047, December.
    9. Ebrahim Endris & Andualem Kassegn, 2022. "The role of micro, small and medium enterprises (MSMEs) to the sustainable development of sub-Saharan Africa and its challenges: a systematic review of evidence from Ethiopia," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-18, December.
    10. Ovidiu Stoica & Angela Roman & Valentina Diana Rusu, 2020. "The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    11. Kim, Jungsuk & Castillejos-Petalcorin, Cynthia & Jinjarak, Yothin & Park, Donghyun & Quising, Pilipinas & Tian, Shu, 2022. "Entrepreneurship and Economic Growth: A Cross-Sectional Analysis Perspective," ADB Economics Working Paper Series 672, Asian Development Bank.
    12. 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.
    13. Gan, Siew Wei & Sarma, Vengadeshvaran & Tang, Yu Hoe & Sim, Siew Chen, 2022. "Entrepreneurship Training and Online Marketplace Participation among Female Persons with Disabilities," ADBI Working Papers 1342, Asian Development Bank Institute.
    14. Khan, Rizwan Ullah & Richardson, Christopher & Salamzadeh, Yashar, 2022. "Spurring competitiveness, social and economic performance of family-owned SMEs through social entrepreneurship; a multi-analytical SEM & ANN perspective," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    15. Diego Corrales-Garay & Eva-María Mora-Valentín & Marta Ortiz-de-Urbina-Criado, 2020. "Entrepreneurship Through Open Data: An Opportunity for Sustainable Development," Sustainability, MDPI, vol. 12(12), pages 1-25, June.
    16. Shani Bashiru & Alhassan Bunyaminu & Ibrahim Nandom Yakubu & Mamdouh Abdulaziz Saleh Al-Faryan, 2023. "Drivers of Financial Inclusion: Insights from Sub-Saharan Africa," Economies, MDPI, vol. 11(5), pages 1-11, May.
    17. Alfredo Valadez-Garcia & Josué Aarón López-Leyva & Gloria Janeth Murillo-Aviña & Sialia Karina Mellink-Méndez, 2023. "Determinants factors for border and cross-border entrepreneurship in the Cali-Baja Region, Mexico–United States of America border," International Entrepreneurship and Management Journal, Springer, vol. 19(3), pages 1425-1447, September.
    18. Isabel Martínez-Rodríguez & Consolación Quintana-Rojo & Pedro Gento & Fernando-Evaristo Callejas-Albiñana, 2022. "Public policy recommendations for promoting female entrepreneurship in Europe," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1235-1262, September.
    19. Faria Islam Oridi & Md. Shawan Uddin & Md. Faisal-E-Alam & Taha Husain, 2022. "Prevailing factors of rural women entrepreneurship in Bangladesh: evidence from handicraft business," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 12(1), pages 305-318, December.
    20. 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.
    21. Sue Abdinnour & Sesan Oluseyi Adeniji, 2023. "Empirical analysis of the impact of entrepreneurial activity on economic growth of Global Entrepreneurship Monitor (GEM) countries," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-11, December.
    22. Sara Proença & Elias Soukiazis, 2023. "The process of sustainable entrepreneurship: a multi-country analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 10995-11010, October.
    23. Charles Stephen Tundui & Christopher Shiganza, 2021. "Determinants of entrepreneurial behaviour in the public sector in Tanzania: a case of water services provision," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 11(1), pages 189-199, December.

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