IDEAS home Printed from https://ideas.repec.org/a/taf/entreg/v21y2009i5-6p459-480.html
   My bibliography  Save this article

Entrepreneurship and economic growth: Evidence from emerging and developed countries

Author

Listed:
  • Dave Valliere
  • Rein Peterson

Abstract

This paper presents an extension to the economic growth model developed by Wong, Ho, and Autio (2005), to reflect differences in the economic effects of opportunity and necessity-based entrepreneurship in both emerging and developed countries. Data from 44 countries for the years 2004 and 2005, as collected by Global Entrepreneurship Monitor (GEM) research and Global Competitiveness Report (GCR) research, are used to identify predictors of GDP growth for emerging and developed nations. The GEM data are used to determine the effect of different types of entrepreneurship on GDP growth. The GCR data operationalize additional control variables suggested by three economic growth theories: new economic geography, endogenous growth theory and national systems of innovation. This contribution to the literature suggests that, in developed countries, a significant portion of economic growth rates can be attributed to high-expectation entrepreneurs exploiting national investments in knowledge creation and regulatory freedom. However, in emerging countries this effect is absent. It is hypothesized that a threshold exists for entrepreneurs to gain access to the formal economy, below which entrepreneurial contributions act through informal mechanisms.

Suggested Citation

  • Dave Valliere & Rein Peterson, 2009. "Entrepreneurship and economic growth: Evidence from emerging and developed countries," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 21(5-6), pages 459-480, September.
    • Handle: RePEc:taf:entreg:v:21:y:2009:i:5-6:p:459-480
    DOI: 10.1080/08985620802332723
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/08985620802332723
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/08985620802332723?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Isabel Grilo & Jesus Maria Irigoyen, 2005. "Entrepreneurship in the EU: to wish and not to be," Papers on Entrepreneurship, Growth and Public Policy 2005-01, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    Full references (including those not matched with items on IDEAS)

    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. Isabel Grilo & Roy Thurik, 2008. "Determinants of entrepreneurial engagement levels in Europe and the US," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 17(6), pages 1113-1145, December.
    2. Isabel Grilo & Roy Thurik, 2005. "Entrepreneurial engagement levels in the European Union," Papers on Entrepreneurship, Growth and Public Policy 2005-29, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    3. Sander Wennekers & Roy Thurik & André van Stel & Niels Noorderhaven, 2003. "Uncertainty Avoidance and the Rate of Business Ownership across 22 OECD Countries, 1976-2000," Tinbergen Institute Discussion Papers 03-089/3, Tinbergen Institute, revised 01 Sep 2004.
    4. Erik Stam & David Audretsch & Joris Meijaard, 2009. "Renascent entrepreneurship," Springer Books, in: Uwe Cantner & Jean-Luc Gaffard & Lionel Nesta (ed.), Schumpeterian Perspectives on Innovation, Competition and Growth, pages 223-237, Springer.
      • Stam, F.C. & Audretsch, D.B. & Meijaard, J., 2006. "Renascent Entrepreneurship," ERIM Report Series Research in Management ERS-2006-017-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    5. Lorraine Uhlaner & Roy Thurik, 2010. "Postmaterialism Influencing Total Entrepreneurial Activity Across Nations," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 301-328, Springer.
    6. Tugrul Daim & Marina Dabic & Elvan Bayraktaroglu, 2016. "Students’ entrepreneurial behavior: international and gender differences," Journal of Innovation and Entrepreneurship, Springer, vol. 5(1), pages 1-22, December.
    7. Erik Stam & David Audretsch & Joris Meijaard, 2006. "Renascent Entrepreneurship - Entrepreneurial Preferences Subsequent to Firm Exit," Papers on Entrepreneurship, Growth and Public Policy 2006-06, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    8. Andre van Stel & David Storey & Roy Thurik & Sander Wennekers, 2005. "From nascent to actual entrepreneurship: the effect of entry barriers," Papers on Entrepreneurship, Growth and Public Policy 2005-35, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    9. Veronique Schutjens & Erik Stam, 2006. "Starting anew: Entrepreneurial intentions and realizations subsequent to business closure," Papers on Entrepreneurship, Growth and Public Policy 2006-10, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    10. Roy Thurik & Isabel Grilo, 2005. "Latent and actual entrepreneurship in Europe and the US: some recent developments," Papers on Entrepreneurship, Growth and Public Policy 2005-24, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
    11. Audretsch, David & Stam, Erik & Meijaard, Joris, 2005. "Renascent Men or Entrepreneurship as a One-Night Stand: Entrepreneurial Intentions Subsequent to Firm Exit," CEPR Discussion Papers 5342, C.E.P.R. Discussion Papers.
    12. Estrin, Saul & Mickiewicz, Tomasz & Aidis, Ruta, 2009. "Entrepreneurial Entry: Which Institutions Matter?," CEPR Discussion Papers 7278, C.E.P.R. Discussion Papers.

    More about this item

    Statistics

    Access and download statistics

    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:taf:entreg:v:21:y:2009:i:5-6:p:459-480. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TEPN20 .

    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.