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Does all entrepreneurship matter? The contribution of entrepreneurial activity to economic growth

Does all entrepreneurship matter? The contribution of entrepreneurial activity to economic growth The purpose of this paper revisits the effect of entrepreneurship on economic growth.Design/methodology/approachUsing a cross-country panel data set of 61 countries in the period 2002–2014, this paper empirically analyzes the differences in contribution to economic growth. Particularly, using an extension of the Cobb–Douglas production function, the authors show the role of entrepreneurship in developed and developing economies. Global entrepreneurship monitor data were used to estimate the proposed types of entrepreneurship.FindingsResults indicate that economic growth can be explained by growth-oriented entrepreneurship, including developing economies. These results remain robust to a variety of specifications that include economic, social and cultural controls, and two ways of sorting countries by stage of development.Originality/valueThe authors split the total entrepreneurial activity (TEA) according to job expectations, in order to isolate the effect of entrepreneurial activity that is growth oriented (dynamic) and not (regular). Lastly, the empirical application presented comprises a more adequate timeframe to analyze the proposed relationship, determining possible differences for developed and developing economies. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Academia Revista Latinoamericana de Administración Emerald Publishing

Does all entrepreneurship matter? The contribution of entrepreneurial activity to economic growth

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1012-8255
DOI
10.1108/arla-11-2018-0256
Publisher site
See Article on Publisher Site

Abstract

The purpose of this paper revisits the effect of entrepreneurship on economic growth.Design/methodology/approachUsing a cross-country panel data set of 61 countries in the period 2002–2014, this paper empirically analyzes the differences in contribution to economic growth. Particularly, using an extension of the Cobb–Douglas production function, the authors show the role of entrepreneurship in developed and developing economies. Global entrepreneurship monitor data were used to estimate the proposed types of entrepreneurship.FindingsResults indicate that economic growth can be explained by growth-oriented entrepreneurship, including developing economies. These results remain robust to a variety of specifications that include economic, social and cultural controls, and two ways of sorting countries by stage of development.Originality/valueThe authors split the total entrepreneurial activity (TEA) according to job expectations, in order to isolate the effect of entrepreneurial activity that is growth oriented (dynamic) and not (regular). Lastly, the empirical application presented comprises a more adequate timeframe to analyze the proposed relationship, determining possible differences for developed and developing economies.

Journal

Academia Revista Latinoamericana de AdministraciónEmerald Publishing

Published: Apr 20, 2020

Keywords: Innovation; Economic growth; Emerging markets; Entrepreneurship; CLADEA 2018; Emprendimiento; Crecimiento Económico; Emprendimiento Dinámico; Economías Emergentes; Innovación; Conocimiento; O30; O47; L26; C23

References