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Decoupling Entrepreneurship Capital from Capital Stock

Author

Listed:
  • Dennis Ridley

    (Professor, School of Business & Industry, Florida A&M University and Dept. of Scientific Computing, Florida State University, Tallahassee, Fl.)

  • Abdullah Khan

    (Associate professor, School of Business, Claflin University)

Abstract

Per capita real gross domestic product adjusted for purchasing power parity (G) is parsimoniously explained by capitalism (C), democracy (D) and rule of law(R). G is estimated from a CDR index equal to the vector inner (dot) product of global invariant parameters [1.53 0.14 0.23 -1.21] and country specific [C D R C·D·R]. The data are for year 2014 and 79 countries that represent practically all people in the world. C is measured by total capitalization then split into human capital of entrepreneurship imagination and creativity and capital stock of knowledge, machines, computers, training, recording devices etc. The contribution of entrepreneurship to G is found to be 6 times that of capital stock.

Suggested Citation

  • Dennis Ridley & Abdullah Khan, 2019. "Decoupling Entrepreneurship Capital from Capital Stock," Bulletin of Political Economy, Bulletin of Political Economy, vol. 13(1), pages 85-94, June.
    • Handle: RePEc:awu:journl:v:13:y:2019:i:1:p:85-94
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    References listed on IDEAS

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    More about this item

    Keywords

    CDR index; GDP; Capitalism; Democracy; Rule of Law; Entrepreneurship;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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