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Entrepreneurship and advancing national level economic efficiency

Author

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  • Kai Du

    (University of Adelaide)

  • Allan O’Connor

    (University of Adelaide)

Abstract

We explore the channels under which entrepreneurship fosters productivity by disentangling its impact on national level economic efficiency and find that more entrepreneurship in aggregate is not always good for economic growth and, most importantly, identifying the form and activity of entrepreneurship is critical for policy-makers to better manage changes in their economies. Our national level results also suggest that the new product entrepreneurship and to a lesser extent improvement-driven opportunity entrepreneurship both significantly contribute to the improvement of national level efficiency. However, both measures would benefit from further development and it seems a higher coincidence of both is more likely to advance a nation’s economic efficiency.

Suggested Citation

  • Kai Du & Allan O’Connor, 2018. "Entrepreneurship and advancing national level economic efficiency," Small Business Economics, Springer, vol. 50(1), pages 91-111, January.
    • Handle: RePEc:kap:sbusec:v:50:y:2018:i:1:d:10.1007_s11187-017-9904-4
    DOI: 10.1007/s11187-017-9904-4
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    10. Ali, Abdul & Kelley, Donna J. & Levie, Jonathan, 2020. "Market-driven entrepreneurship and institutions," Journal of Business Research, Elsevier, vol. 113(C), pages 117-128.
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    More about this item

    Keywords

    Economic efficiency; Data envelopment analysis; New product entrepreneurship; Improvement-driven opportunity entrepreneurship; Global entrepreneurship monitor;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P42 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Productive Enterprises; Factor and Product Markets; Prices

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