Entrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income Economies
This article implements correlation analysis and a fixed effects model to assess the influence of entrepreneurial framework conditions (EFCs) on economic growth in middle-income countries. The implemented panel data set for EFCs is unearthed from the Global Entrepreneurship Monitor website and that...
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| Format: | Article |
| Language: | English |
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University of Banja Luka, Faculty of Economics
2024-07-01
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| Series: | Acta Economica |
| Subjects: | |
| Online Access: | https://ae.ef.unibl.org/index.php/ae/article/view/475 |
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| _version_ | 1823858114977333248 |
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| author | Frank Ranganai Matenda Justin Chirima Mabutho Sibanda |
| author_facet | Frank Ranganai Matenda Justin Chirima Mabutho Sibanda |
| author_sort | Frank Ranganai Matenda |
| collection | DOAJ |
| description | This article implements correlation analysis and a fixed effects model to assess the influence of entrepreneurial framework conditions (EFCs) on economic growth in middle-income countries. The implemented panel data set for EFCs is unearthed from the Global Entrepreneurship Monitor website and that for gross domestic product (GDP) per capita, a surrogate for economic growth, is extracted from the World Bank website over the observation period 2001 – 2021. We have discovered that there are statistically significant positive correlations between GDP per capita and ‘entrepreneurial finance’ and ‘post-school entrepreneurial education and training’, and statistically significant negative correlations between GDP per capita and ‘taxes and bureaucracy’, ‘internal market openness’, and ‘physical and service infrastructure’. Moreover, we have exposed that EFCs positively and significantly impact economic growth in middle-income countries. This article contributes to the discourse on the connection between economic growth and conditions for entrepreneurship in middle-income economies. As a recommendation, policymakers should consider EFCs when developing policies to kindle economic growth in middle-income economies. Further, the study results could assist policymakers in selecting and applying suitable measures to eradicate the impediments in the businesses where entrepreneurs operate.
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| format | Article |
| id | doaj-art-4746f8b1dcda46c2877df0a1a57e508e |
| institution | Kabale University |
| issn | 1512-858X 2232-738X |
| language | English |
| publishDate | 2024-07-01 |
| publisher | University of Banja Luka, Faculty of Economics |
| record_format | Article |
| series | Acta Economica |
| spelling | doaj-art-4746f8b1dcda46c2877df0a1a57e508e2025-02-11T14:25:41ZengUniversity of Banja Luka, Faculty of EconomicsActa Economica1512-858X2232-738X2024-07-01224010.7251/ACE2440055MEntrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income EconomiesFrank Ranganai Matenda0https://orcid.org/0000-0001-7571-7231Justin Chirima1https://orcid.org/0000-0002-0542-9661Mabutho Sibanda2https://orcid.org/0000-0002-8656-7539School of Accounting, Economics and Finance, University of KwaZulu-Natal, Westville Campus, Durban, South AfricaDepartment of Mathematics and Computer Science, Great Zimbabwe University, Masvingo, ZimbabweSchool of Accounting, Economics and Finance, University of KwaZulu-Natal, Westville Campus, Durban, South AfricaThis article implements correlation analysis and a fixed effects model to assess the influence of entrepreneurial framework conditions (EFCs) on economic growth in middle-income countries. The implemented panel data set for EFCs is unearthed from the Global Entrepreneurship Monitor website and that for gross domestic product (GDP) per capita, a surrogate for economic growth, is extracted from the World Bank website over the observation period 2001 – 2021. We have discovered that there are statistically significant positive correlations between GDP per capita and ‘entrepreneurial finance’ and ‘post-school entrepreneurial education and training’, and statistically significant negative correlations between GDP per capita and ‘taxes and bureaucracy’, ‘internal market openness’, and ‘physical and service infrastructure’. Moreover, we have exposed that EFCs positively and significantly impact economic growth in middle-income countries. This article contributes to the discourse on the connection between economic growth and conditions for entrepreneurship in middle-income economies. As a recommendation, policymakers should consider EFCs when developing policies to kindle economic growth in middle-income economies. Further, the study results could assist policymakers in selecting and applying suitable measures to eradicate the impediments in the businesses where entrepreneurs operate. https://ae.ef.unibl.org/index.php/ae/article/view/475entrepreneurshipeconomic growthentrepreneurial framework conditionsmiddle-income economiescorrelation analysisfixed effects model |
| spellingShingle | Frank Ranganai Matenda Justin Chirima Mabutho Sibanda Entrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income Economies Acta Economica entrepreneurship economic growth entrepreneurial framework conditions middle-income economies correlation analysis fixed effects model |
| title | Entrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income Economies |
| title_full | Entrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income Economies |
| title_fullStr | Entrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income Economies |
| title_full_unstemmed | Entrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income Economies |
| title_short | Entrepreneurial Framework Conditions and Economic Growth: Insights from Middle-Income Economies |
| title_sort | entrepreneurial framework conditions and economic growth insights from middle income economies |
| topic | entrepreneurship economic growth entrepreneurial framework conditions middle-income economies correlation analysis fixed effects model |
| url | https://ae.ef.unibl.org/index.php/ae/article/view/475 |
| work_keys_str_mv | AT frankranganaimatenda entrepreneurialframeworkconditionsandeconomicgrowthinsightsfrommiddleincomeeconomies AT justinchirima entrepreneurialframeworkconditionsandeconomicgrowthinsightsfrommiddleincomeeconomies AT mabuthosibanda entrepreneurialframeworkconditionsandeconomicgrowthinsightsfrommiddleincomeeconomies |