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The Quality of Entrepreneurial Activity and Economic Competitiveness in European Union Countries: A Panel Data Approach

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  • Valentina Diana Rusu

    (Institute of Interdisciplinary Research, Social Sciences and Humanities Research Department, Alexandru Ioan Cuza university of Iași, Lascăr Catargi Street no. 54, 700107 Iași, Romania)

  • Adina Dornean

    (Department of Finance, Money and Public Administration, Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iași, Carol I Boulevard, No. 22, 700505 Iași, Romania)

Abstract

To increase competitiveness, a country has to outperform its competitors in terms of research and innovation, entrepreneurship, competition, and education. In this paper, we aim to test the relationship between the quality of entrepreneurial activity and the economic competitiveness for the European Union countries by using panel data estimation techniques. Our research considers a sample of 28 EU countries over the period 2011–2017. For the empirical investigation we apply panel data regression models. The results obtained show that business, macroeconomic environment and the quality of entrepreneurship are significant determinants of economic competitiveness of EU countries. Thus, we identify significant positive relations between innovation rate, inflation rate, FDI and economic competitiveness, and significant negative relations between expectations regarding job creation, tax rate, costs and competitiveness. Our study completes the literature by analyzing the relationship between the quality of entrepreneurship and the competitiveness of countries, for an extensive sample formed by all the 28 countries members of the European Union for a period of seven recent years.

Suggested Citation

  • Valentina Diana Rusu & Adina Dornean, 2019. "The Quality of Entrepreneurial Activity and Economic Competitiveness in European Union Countries: A Panel Data Approach," Administrative Sciences, MDPI, vol. 9(2), pages 1-21, April.
    • Handle: RePEc:gam:jadmsc:v:9:y:2019:i:2:p:35-:d:223333
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    4. 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.
    5. Pawel Merlo & Jacek Michalak, 2021. "Competitiveness of Regions Versus Accessibility of Cultural Infrastructure: A Case Study of Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 365-387.
    6. Ignatov Augustin, 2019. "Institutional Efficiency, Entrepreneurship, and the Premises of Economic Development in the Eastern European Countries," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 64(2), pages 12-32, August.
    7. Onuferová Erika & Čabinová Veronika & Matijová Mária, 2020. "Categorization of the EU Member States in the Context of Selected Multicriteria International Indices Using Cluster Analysis," Review of Economic Perspectives, Sciendo, vol. 20(3), pages 379-401, September.
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    10. Wolters, Dominic, 2021. "An Analysis of the Impact of Income Tax Changes on the Rate of Business Creation in the United States, 1992-2018," Undergraduate Research Papers 337404, University of Minnesota, Department of Applied Economics.

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