Advanced

Entrepreneurship and Economic Growth: Evidence from GEM Data

Lundin, Josefine LU (2015) NEKP01 20151
Department of Economics
Abstract
There is a widespread perception among scholars and policymakers that a link exists between entrepreneurship and GDP growth. Based on data from 33 OECD countries between 2001 and 2011, this essay aims to empirically investigate the impact of entrepreneurship on economic growth. More specifically, this essay seeks to analyze how entrepreneurship contributes to different types of economic growth. In doing so, I distinguish between two types of economic growth: intensive growth, measured as GDP growth, and inclusive growth, measured as real disposal household income. The empirical results provide three main findings. First, the results show strong support of a positive relationship between entrepreneurship and intensive growth, applying both... (More)
There is a widespread perception among scholars and policymakers that a link exists between entrepreneurship and GDP growth. Based on data from 33 OECD countries between 2001 and 2011, this essay aims to empirically investigate the impact of entrepreneurship on economic growth. More specifically, this essay seeks to analyze how entrepreneurship contributes to different types of economic growth. In doing so, I distinguish between two types of economic growth: intensive growth, measured as GDP growth, and inclusive growth, measured as real disposal household income. The empirical results provide three main findings. First, the results show strong support of a positive relationship between entrepreneurship and intensive growth, applying both an OLS and 2SLS method. The latter method is used in an attempt to reduce possible endogeneity of entrepreneurship. Second, a non-linear relationship between entrepreneurship and intensive growth seems to exist. Third, using an Error Correction Model (ECM) for panel data, this essay find strong support for a positive long-run relationship between entrepreneurship and inclusive growth. However, this result does not appear in the short-run. This study confirms previous research on the relationship between entrepreneurship and intensive growth. In addition, the significant effects on inclusive growth have, to the best of my knowledge, never been shown empirically before within the OECD countries. Thus, this study ad further to the current entrepreneurial literature by showing that entrepreneurship not only affects GDP growth but also inclusive growth. (Less)
Please use this url to cite or link to this publication:
author
Lundin, Josefine LU
supervisor
organization
course
NEKP01 20151
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Entrepreneurship, Intensive and Inclusive growth, GEM-data
language
English
id
7792084
date added to LUP
2015-09-15 11:23:59
date last changed
2015-09-15 11:23:59
@misc{7792084,
  abstract     = {There is a widespread perception among scholars and policymakers that a link exists between entrepreneurship and GDP growth. Based on data from 33 OECD countries between 2001 and 2011, this essay aims to empirically investigate the impact of entrepreneurship on economic growth. More specifically, this essay seeks to analyze how entrepreneurship contributes to different types of economic growth. In doing so, I distinguish between two types of economic growth: intensive growth, measured as GDP growth, and inclusive growth, measured as real disposal household income. The empirical results provide three main findings. First, the results show strong support of a positive relationship between entrepreneurship and intensive growth, applying both an OLS and 2SLS method. The latter method is used in an attempt to reduce possible endogeneity of entrepreneurship. Second, a non-linear relationship between entrepreneurship and intensive growth seems to exist. Third, using an Error Correction Model (ECM) for panel data, this essay find strong support for a positive long-run relationship between entrepreneurship and inclusive growth. However, this result does not appear in the short-run. This study confirms previous research on the relationship between entrepreneurship and intensive growth. In addition, the significant effects on inclusive growth have, to the best of my knowledge, never been shown empirically before within the OECD countries. Thus, this study ad further to the current entrepreneurial literature by showing that entrepreneurship not only affects GDP growth but also inclusive growth.},
  author       = {Lundin, Josefine},
  keyword      = {Entrepreneurship,Intensive and Inclusive growth,GEM-data},
  language     = {eng},
  note         = {Student Paper},
  title        = {Entrepreneurship and Economic Growth: Evidence from GEM Data},
  year         = {2015},
}