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Entrepreneurial activity and economic development: The shape of the relationship

Author

Listed:
  • Larin, Alexander

    () (Higher School of Economics (Nizhnii Novgorod) Russia)

  • Tarunina, Elena

    () (Higher School of Economics (Nizhnii Novgorod), Russia)

Abstract

The paper investigates how entrepreneurial activity depends on economic development, measured by GDP per capita. The empirical analysis is based on GEM yearly data on 65 countries for the period from 2001 to 2011. We use nonparametric approach to show that variation in entrepreneurial activity across countries can be explained by U-shaped relationship, the hypothesis of L-shaped relationship is rejected. At the same time the analysis does not reveal any significant relationship between the variables in time within one particular country.

Suggested Citation

  • Larin, Alexander & Tarunina, Elena, 2015. "Entrepreneurial activity and economic development: The shape of the relationship," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 37(1), pages 3-26.
  • Handle: RePEc:ris:apltrx:0254
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    entrepreneurial activity; economic development; partially linear regression; nonparametric estimation; panel data; GEM;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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