IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v11y2023i6p162-d1166748.html
   My bibliography  Save this article

The Moderating Role of Research and Development (R&D) Support in the Relationship between Entrepreneurship and per Capita Output—A Study on the GCC Countries

Author

Listed:
  • Houcine Benlaria

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

  • Naeimah Fahad S. Almawishir

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

  • Sawssan Saadaoui

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

  • Sanaa Mostafa Mohammed Mohammed

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

  • Badreldin Mohamed Ahmed Abdulrahman

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

  • Ibrahhim Ahmed ELamin Eltahir

    (College of Business, Jouf University, Sakaka 72388, Saudi Arabia)

Abstract

The current study examines the moderating role of R&D expenditures by the government on the relationship between entrepreneurship and per capita output in GCC countries. Using secondary quantitative data, panel data analysis was conducted for six GCC countries (Saudi Arabia, Kuwait, Oman, Bahrain, Qatar, and UAE) based on their scores on the Global Entrepreneurship Index, Ease of Doing Business, and R&D expenditure as a percentage of GDP. Descriptive statistics and regression analysis were conducted using Eviews 12. The study found that a supportive business environment and entrepreneurship ecosystem can lead to higher per capita output and that laboratory force and capital are significant positive contributors to per capita output. However, both Ease of Doing Business and the Global Entrepreneurship Index have a significant negative impact on per capita output. The study did not find significant moderation of the relationship between entrepreneurship and per capita output by R&D expenditures. These findings have important implications for policy-makers and academia, emphasizing the significant labour force and capital for per capita output. Future research should explore the relationship between entrepreneurship and growth further and investigate the role of R&D. Policy recommendations include reducing regulatory burdens and providing tax incentives to create a supportive environment for entrepreneurship and increasing R&D funding to promote per capita output. Overall, this study contributes to the state of the art through examining the moderating role of R&D expenditures on the relationship between entrepreneurship and per capita output in the context of GCC countries.

Suggested Citation

  • Houcine Benlaria & Naeimah Fahad S. Almawishir & Sawssan Saadaoui & Sanaa Mostafa Mohammed Mohammed & Badreldin Mohamed Ahmed Abdulrahman & Ibrahhim Ahmed ELamin Eltahir, 2023. "The Moderating Role of Research and Development (R&D) Support in the Relationship between Entrepreneurship and per Capita Output—A Study on the GCC Countries," Economies, MDPI, vol. 11(6), pages 1-16, June.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:6:p:162-:d:1166748
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/11/6/162/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/11/6/162/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pop Silaghi, Monica Ioana & Alexa, Diana & Jude, Cristina & Litan, Cristian, 2014. "Do business and public sector research and development expenditures contribute to economic growth in Central and Eastern European Countries? A dynamic panel estimation," Economic Modelling, Elsevier, vol. 36(C), pages 108-119.
    2. Zoltán J. Ács & Erkko Autio & László Szerb, 2015. "National Systems of Entrepreneurship: Measurement issues and policy implications," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 28, pages 523-541, Edward Elgar Publishing.
    3. Mohamed Abouelhassan Ali & Moaaz Kabil & Rahaf Alayan & Róbert Magda & Lóránt Dénes Dávid, 2021. "Entrepreneurship Ecosystem Performance in Egypt: An Empirical Study Based on the Global Entrepreneurship Index (GEI)," Sustainability, MDPI, vol. 13(13), pages 1-22, June.
    4. Maryann Feldman & Theodora Hadjimichael & Lauren Lanahan & Tom Kemeny, 2016. "The logic of economic development: a definition and model for investment," Environment and Planning C, , vol. 34(1), pages 5-21, February.
    5. Alexander S. Kritikos, 2024. "Entrepreneurs and their impact on jobs and economic growth," IZA World of Labor, Institute of Labor Economics (IZA), pages 1-8.2, October.
    6. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.
    7. Gimenez-Fernandez, Elena M. & Sandulli, Francesco D. & Bogers, Marcel, 2020. "Unpacking liabilities of newness and smallness in innovative start-ups: Investigating the differences in innovation performance between new and older small firms," Research Policy, Elsevier, vol. 49(10).
    8. Ulrich Witt, 2016. "Rethinking Economic Evolution," Books, Edward Elgar Publishing, number 13403.
    9. Åsa Lindholm-Dahlstrand & Martin Andersson & Bo Carlsson, 2019. "Entrepreneurial experimentation: a key function in systems of innovation," Small Business Economics, Springer, vol. 53(3), pages 591-610, October.
    10. David Urbano & Sebastian Aparicio & David Audretsch, 2019. "Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned?," Small Business Economics, Springer, vol. 53(1), pages 21-49, June.
    11. repec:iza:izawol:journl:y:2014:p:8 is not listed on IDEAS
    12. Miniaoui, Hela & Schilirò, Daniele, 2016. "Innovation and Entrepreneurship for the growth and diversification of the GCC Economies," MPRA Paper 71898, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ahmed Benlaria & Naima Sadaoui & Naeimah Fahad S. Almawishir & Houcine Benlaria, 2024. "Navigating the Oil-environment Nexus: Saudi Arabia’s Challenge in Sustainable Development," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 292-300, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kim, Jungsuk & Castillejos-Petalcorin, Cynthia & Jinjarak, Yothin & Park, Donghyun & Quising, Pilipinas & Tian, Shu, 2022. "Entrepreneurship and Economic Growth: A Cross-Sectional Analysis Perspective," ADB Economics Working Paper Series 672, Asian Development Bank.
    2. Maria Bastida & Ana Olveira & Miguel Ángel Vázquez Taín, 2023. "Are cooperatives gender sensitive? A confirmatory and predictive analysis of women's collective entrepreneurship," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(4), pages 1035-1059, December.
    3. Audretsch, David & Colombelli, Alessandra & Grilli, Luca & Minola, Tommaso & Rasmussen, Einar, 2020. "Innovative start-ups and policy initiatives," Research Policy, Elsevier, vol. 49(10).
    4. Danilo Boffa & Antonio Prencipe & Armando Papa & Christian Corsi & Mario Sorrentino, 2023. "Boosting circular economy via the b-corporation roads. The effect of the entrepreneurial culture and exogenous factors on sustainability performance," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 523-561, June.
    5. João Ricardo Faria & Laudo Ogura & Mauricio Prado & Christopher J. Boudreaux, 2023. "Government investments and entrepreneurship," Small Business Economics, Springer, vol. 61(4), pages 1657-1670, December.
    6. Angela Stefania Bergantino & Claudia Capozza & Ada Spiru, 2023. "Transport endowment, knowledge spillovers and firm performance in emerging economies," Small Business Economics, Springer, vol. 61(4), pages 1515-1541, December.
    7. Bergantino, Angela Stefania & Capozza, Claudia & Spiru, Ada, 2021. "Multilevel analysis of firms’ performance in Emerging Economies: The role of transport infrastructures and logistics as contextual factors," Working Papers 21_2, SIET Società Italiana di Economia dei Trasporti e della Logistica.
    8. José Alberto Martínez-González & Urszula Kobylinska & Francisco J. García-Rodríguez & Lukasz Nazarko, 2019. "Antecedents of Entrepreneurial Intention among Young People: Model and Regional Evidence," Sustainability, MDPI, vol. 11(24), pages 1-29, December.
    9. Guo-Hua Cao & Jing Zhang, 2021. "Is a sustainable loop of economy and entrepreneurial ecosystem possible? a structural perspective," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7002-7040, May.
    10. Khan, Muhammad Salar, 2022. "Absorptive capacities and economic growth in low- and middle-income economies," Structural Change and Economic Dynamics, Elsevier, vol. 62(C), pages 156-188.
    11. Wei, Yifan, 2022. "Reprint of: Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(9).
    12. Aparicio, Sebastian & Audretsch, David & Urbano, David, 2021. "Why is export-oriented entrepreneurship more prevalent in some countries than others? Contextual antecedents and economic consequences," Journal of World Business, Elsevier, vol. 56(3).
    13. María J. Angulo-Guerrero & Elena Bárcena-Martín & Samuel Medina-Claros & Salvador Pérez-Moreno, 2024. "Labor market regulation and gendered entrepreneurship: a cross-national perspective," Small Business Economics, Springer, vol. 62(2), pages 687-706, February.
    14. Essén, Anna & Wennberg, Karl & Krohwinkel, Anna, 2022. "Assessing Whether Mission-Driven Innovation Makes a Difference: Mission Impossible? Developing a Guiding Framework for the Evaluation of Five Mission Driven Environments for Health in Sweden," SSE Working Paper Series in Business Administration 2022:2, Stockholm School of Economics.
    15. Aparicio, Sebastian & Urbano, David & Stenholm, Pekka, 2021. "Attracting the entrepreneurial potential: A multilevel institutional approach," Technological Forecasting and Social Change, Elsevier, vol. 168(C).
    16. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    17. Hua, Wei & Mitchell, Ronald K. & Mitchell, Benjamin T. & Mitchell, J. Robert & Israelsen, Trevor L., 2022. "Momentum for entrepreneurial internationalization: Friction at the interface between international and domestic institutions," Journal of Business Venturing, Elsevier, vol. 37(6).
    18. Yunqing Liu & Zekun Dai & Yiting Wu & Fang Da, 2023. "How the Social Relations Affect Performance in Chinese High-tech New Ventures: The Role of Legitimacy Acquisition and Symbolic Strategy," SAGE Open, , vol. 13(4), pages 21582440231, December.
    19. David Urbano & David Audretsch & Sebastian Aparicio & Maria Noguera, 2020. "Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment," International Entrepreneurship and Management Journal, Springer, vol. 16(3), pages 1065-1099, September.
    20. Tobias Kollmann & Simon Hensellek & Philipp Benedikt Jung & Katharina de Cruppe, 2023. "How bricoleurs go international: a European cross-country study considering the moderating role of governmental entrepreneurship support programs," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1126-1159, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:11:y:2023:i:6:p:162-:d:1166748. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.