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Is a sustainable loop of economy and entrepreneurial ecosystem possible? a structural perspective

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  • Guo-Hua Cao

    (Chongqing University)

  • Jing Zhang

    (Chongqing University)

Abstract

Is region-level entrepreneurial ecosystem valid in emerging markets? What is the mechanism between entrepreneurial ecosystem elements? Is region-level entrepreneurial ecosystem in emerging markets economic-promoting? An endogenous growth model with labor-preference technologic progress is introduced to interpret the interactions between entrepreneurial ecosystem layers and growth; besides, a panel vector auto-regression model based on Chinese provinces from 2002 to 2016 is used to test. Accordingly, we empirically prove the possibility of entrepreneurial ecosystem achieving sustainable development at the scope of Chinese provinces. However, several specific situations should be avoided, including (1) a too-low relative human capital return, (2) a too-low poor-conditions-led transaction efficiency, and (3) a too-low human-capital-stock-determined technology. Thus, short-term tolerance and continuous promoting efforts are necessary. By doing so, we contribute to the literature of region-level entrepreneurial ecosystem and economic growth, or to say the fields of institutional economics, regional economics, and development economics.

Suggested Citation

  • Guo-Hua Cao & Jing Zhang, 2021. "Is a sustainable loop of economy and entrepreneurial ecosystem possible? a structural perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7002-7040, May.
    • Handle: RePEc:spr:endesu:v:23:y:2021:i:5:d:10.1007_s10668-020-00902-y
    DOI: 10.1007/s10668-020-00902-y
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