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Entrepreneurship and ICT: a comparative analysis between Germany and Portugal

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Abstract

The paper aims to investigate the impact of the liberalisation of the European telecommunications markets on the business ownership rate, employment, Gross Domestic Product (GDP) and investment in Information and Communication Technologies (ICTs) in two European countries: Germany and Portugal. For this purpose, a Cointegrated Vector Autoregressive (CVAR) model is used in order to identify the impacts that originate from the adoption of this kind of public policy. In the case of Germany, a surprising causality relationship is detected, in the sense that the GDP precedes the decreasing business ownership rate. In the case of Portugal, the business ownership rate pulls for additional investments in ICT. Besides, a creative entrepreneurial destruction is somehow ratified, since the business ownership rate impacts negatively on the level of employment.

Suggested Citation

  • Joao Leitao & Joao Ferreira, 2009. "Entrepreneurship and ICT: a comparative analysis between Germany and Portugal," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 7(3), pages 324-346.
  • Handle: RePEc:ids:ijesbu:v:7:y:2009:i:3:p:324-346
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