IDEAS home Printed from https://ideas.repec.org/a/ssi/jouesi/v7y2019i2p1036-1047.html
   My bibliography  Save this article

Investigating the relationship between entrepreneurial activity and economic growth: a case of Middle East

Author

Listed:
  • Ahmad Fathi Alheet

    (Al-Ahliyya Amman University, Jordan)

Abstract

The current research is aimed at investigating the relationship between entrepreneurial activity and economic growth, more specifically, in the context of Middle East countries. Entrepreneurial activities are professed to improve the economic development of the country through employment generation, increase in the rate of gross domestic product (GDP), increased productivity levels, poverty alleviation, and so on. Based on the possibility of these positive aspects, economic growth is considered to be driven through increased entrepreneurial activities, in the context of developing countries. To investigate this relationship between research variables, quantitative data was collected using the World Bank database of 8 Middle Eastern countries for the period 2009-2016. Based on the correlation and regression results, the study finds a significant positive impact of entrepreneurial activity (measured as new businesses registered) on economic growth (GDP growth) in the Middle East. Therefore, it is important for states in the Middle East to focus on promoting entrepreneurial activity, which influences economic growth.

Suggested Citation

  • Ahmad Fathi Alheet, 2019. "Investigating the relationship between entrepreneurial activity and economic growth: a case of Middle East," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(2), pages 1036-1047, December.
    • Handle: RePEc:ssi:jouesi:v:7:y:2019:i:2:p:1036-1047
    DOI: 10.9770/jesi.2019.7.2(17)
    as

    Download full text from publisher

    File URL: https://jssidoi.org/jesi/uploads/articles/26/Alheet_Investigating_the_relationship_between_entrepreneurial_activity_and_economic_growth_a_case_of_Middle_East.pdf
    Download Restriction: no
    File URL: https://jssidoi.org/jesi/article/420
    Download Restriction: no
    File URL: https://libkey.io/10.9770/jesi.2019.7.2(17)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. André Stel & Martin Carree & Roy Thurik, 2005. "The Effect of Entrepreneurial Activity on National Economic Growth," Small Business Economics, Springer, vol. 24(3), pages 311-321, February.
    2. Rey-Martí, Andrea & Ribeiro-Soriano, Domingo & Sánchez-García, José Luis, 2016. "Giving back to society: Job creation through social entrepreneurship," Journal of Business Research, Elsevier, vol. 69(6), pages 2067-2072.
    3. Robert W. Fairlie & Frank M. Fossen, 2018. "Opportunity versus Necessity Entrepreneurship: Two Components of Business Creation," SOEPpapers on Multidisciplinary Panel Data Research 959, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Prieger, James E. & Bampoky, Catherine & Blanco, Luisa R. & Liu, Aolong, 2016. "Economic Growth and the Optimal Level of Entrepreneurship," World Development, Elsevier, vol. 82(C), pages 95-109.
    5. Alexander Kritikos, 2014. "Entrepreneurs and their impact on jobs and economic growth," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-8, May.
    6. João J. Ferreira & Alain Fayolle & Cristina Fernandes & Mário Raposo, 2017. "Effects of Schumpeterian and Kirznerian entrepreneurship on economic growth: panel data evidence," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(1-2), pages 27-50, January.
    7. FARAYIBI, Adesoji, 2015. "Entrepreneurship as a Driver of Economic Growth: Evidence from Enterprise Development in Nigeria," MPRA Paper 74591, University Library of Munich, Germany.
    8. Domingo Ribeiro-Soriano, 2017. "Small business and entrepreneurship: their role in economic and social development," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 29(1-2), pages 1-3, January.
    9. Dominiak Piotr & Marek Rekowski, 2009. "The Relationship Between Entrepreneurship and Economic Growth: A Review of Recent Research Achievements," Springer Books, in: Miguel-Angel Galindo & Joaquín Guzman & Domingo Ribeiro (ed.), Entrepreneurship and Business, pages 113-136, Springer.
    10. Devece, Carlos & Peris-Ortiz, Marta & Rueda-Armengot, Carlos, 2016. "Entrepreneurship during economic crisis: Success factors and paths to failure," Journal of Business Research, Elsevier, vol. 69(11), pages 5366-5370.
    11. Justin Doran & Nóirín McCarthy & Marie O’Connor, 2018. "The role of entrepreneurship in stimulating economic growth in developed and developing countries," Cogent Economics & Finance, Taylor & Francis Journals, vol. 6(1), pages 1442093-144, January.
    12. repec:iza:izawol:journl:y:2014:p:8 is not listed on IDEAS
    13. Noh-Sun Kwark & Eunseong Ma, 2016. "Entrepreneurship and Income Distribution Dynamics: Why Are Top Income Earners Unaffected by Business Cycles?," Working Papers 1608, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    14. Antonio Lecuna, 2014. "High income inequality as a structural factor in entrepreneurial activity," Past Working Papers xx, Universidad del Desarrollo, School of Business and Economics, revised Dec 2014.
    15. Frederic Sautet, 2013. "Local and Systemic Entrepreneurship: Solving the Puzzle of Entrepreneurship and Economic Development," Entrepreneurship Theory and Practice, , vol. 37(2), pages 387-402, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Jungsuk & Castillejos-Petalcorin, Cynthia & Jinjarak, Yothin & Park, Donghyun & Quising, Pilipinas & Tian, Shu, 2022. "Entrepreneurship and Economic Growth: A Cross-Sectional Analysis Perspective," ADB Economics Working Paper Series 672, Asian Development Bank.
    2. Isabel Martínez-Rodríguez & Consolación Quintana-Rojo & Pedro Gento & Fernando-Evaristo Callejas-Albiñana, 2022. "Public policy recommendations for promoting female entrepreneurship in Europe," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1235-1262, September.
    3. Ben Youssef, Adel & Boubaker, Sabri & Omri, Anis, 2018. "Entrepreneurship and sustainability: The need for innovative and institutional solutions," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 232-241.
    4. Sara Proença & Elias Soukiazis, 2023. "The process of sustainable entrepreneurship: a multi-country analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 10995-11010, October.
    5. Konon, Alexander & Fritsch, Michael & Kritikos, Alexander S., 2018. "Business cycles and start-ups across industries: An empirical analysis of German regions," Journal of Business Venturing, Elsevier, vol. 33(6), pages 742-761.
    6. Bhuiyan, Muhammad Faress & Ivlevs, Artjoms, 2019. "Micro-entrepreneurship and subjective well-being: Evidence from rural Bangladesh," Journal of Business Venturing, Elsevier, vol. 34(4), pages 625-645.
    7. Folorunsho M. Ajide & James T. Dada, 2023. "Poverty, entrepreneurship, and economic growth in Africa," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 199-226, June.
    8. Paz Rico & Bernardí Cabrer-Borrás & María Mar Benavides-Espinosa, 2020. "Intangible capital and business productivity in the hotel industry," International Entrepreneurship and Management Journal, Springer, vol. 16(2), pages 691-707, June.
    9. Thomas Neumann, 2021. "The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review," Management Review Quarterly, Springer, vol. 71(3), pages 553-584, July.
    10. David Urbano & Sebastian Aparicio & Victor Querol, 2016. "Social progress orientation and innovative entrepreneurship: an international analysis," Journal of Evolutionary Economics, Springer, vol. 26(5), pages 1033-1066, December.
    11. Prieger, James E. & Bampoky, Catherine & Blanco, Luisa R. & Liu, Aolong, 2016. "Economic Growth and the Optimal Level of Entrepreneurship," World Development, Elsevier, vol. 82(C), pages 95-109.
    12. Xiaoyan Huang & Yuli Chen, 2021. "The Impact of Entrepreneurship on Economic Growth within a City," Businesses, MDPI, vol. 1(3), pages 1-9, October.
    13. 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.
    14. Dhahri, Sabrine & Omri, Anis, 2018. "Entrepreneurship contribution to the three pillars of sustainable development: What does the evidence really say?," World Development, Elsevier, vol. 106(C), pages 64-77.
    15. José Ernesto Amorós & Luciano Ciravegna & Vesna Mandakovic & Pekka Stenholm, 2019. "Necessity or Opportunity? The Effects of State Fragility and Economic Development on Entrepreneurial Efforts," Entrepreneurship Theory and Practice, , vol. 43(4), pages 725-750, July.
    16. Boudreaux, Christopher & Caudill, Steven, 2019. "Entrepreneurship, Institutions, and Economic Growth: Does the Level of Development Matter?," MPRA Paper 94244, University Library of Munich, Germany.
    17. Jolanda Hessels & Wim Naudé, 2019. "The Intersection Of The Fields Of Entrepreneurship And Development Economics: A Review Towards A New View," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 389-403, April.
    18. Ovidiu Stoica & Angela Roman & Valentina Diana Rusu, 2020. "The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries," Sustainability, MDPI, vol. 12(3), pages 1-19, February.
    19. Ondřej Dvouletý & Alisa Gordievskaya & David Anthony Procházka, 2018. "Investigating the relationship between entrepreneurship and regional development: case of developing countries," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-9, December.
    20. Mojca Svetek & Mateja Drnovsek, 2022. "Exploring the Effects of Types of Early-Stage Entrepreneurial Activity on Subjective Well-Being," Journal of Happiness Studies, Springer, vol. 23(1), pages 149-170, January.

    More about this item

    Keywords

    entrepreneurial activity; economic growth; Middle East; new businesses registered;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssi:jouesi:v:7:y:2019:i:2:p:1036-1047. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuela Tvaronaviciene (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.