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The effect of governance on entrepreneurship: from all income economies perspective

Author

Listed:
  • Mekonnen Bogale Abegaz

    (Jimma University)

  • Kenenisa Lemi Debela

    (Jimma University)

  • Reta Megersa Hundie

    (Jimma University)

Abstract

The purpose of this study is to analyze the effect of governance indicators on Entrepreneurship. Explanatory research design with Pearson correlation and multiple linear regression models were applied. Five-year World Bank data (2014–2018) of 126 countries from all economic development levels were used. Worldwide governance indicators considered are voice and accountability, political stability, government effectiveness, regulatory quality, rule of law, and corruption control. Gross net income was taken as a control variable. To measure entrepreneurship, the number of formally registered limited liability businesses as a percentage of the working-age population, was used. To make highly skewed time series data of dependent variable (entrepreneurship) closer to normal, logarithmic transformation was made and heteroscedasticity of residuals was checked. The finding of Pearson correlation shows that there are moderate to strong significant correlations (0.466 ≤ r ≤ 0.806, p

Suggested Citation

  • Mekonnen Bogale Abegaz & Kenenisa Lemi Debela & Reta Megersa Hundie, 2023. "The effect of governance on entrepreneurship: from all income economies perspective," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-18, December.
    • Handle: RePEc:spr:joiaen:v:12:y:2023:i:1:d:10.1186_s13731-022-00264-x
    DOI: 10.1186/s13731-022-00264-x
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