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

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  • 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)
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    References listed on IDEAS

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    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

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