Longitudinal Analysis of Entrepreneurship and Competitiveness Dynamics in Latin America
This study analyzes the relationship between entrepreneurial dynamics in Latin-American countries and the level of competitiveness these countries show. Based on the research conducted by Wennekers et al. (2005) that demonstrates a U-shaped relationship between the country’s rate of entrepreneurship and its level of competitiveness and economic development, we hypothesize that Latin-American countries have a descending behaviour under the U-shaped curve approach. The results from three regression models support this relationship and suggest that region’s competitiveness and economic growth have not had an important effect on entrepreneurial dynamics. We discuss that Latin-American countries need to improve some structural factors to achieve a high level of entrepreneurial dynamics.
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