Mediating role of research and development on entrepreneurial activities and growth. Evidence from cross-country data
| Date | 07 October 2014 |
| DOI | https://doi.org/10.1108/WJEMSD-11-2013-0056 |
| Pages | 300-313 |
| Published date | 07 October 2014 |
| Author | Doaa M. Salman |
| Subject Matter | Strategy,Business ethics,Sustainability |
Mediating role of research and
development on entrepreneurial
activities and growth
Evidence from cross-country data
Doaa M. Salman
Department of Economics, Modern Sciences and Arts University (MSA),
Giza, Egypt
Abstract
Purpose – The purpose of this paper is to investigate to what extent the level of human development
affects the relationships between entrepreneurial activities (EAs) and total factor productivity (TFP).
The paper’s objectives are threefold. First, it seeks to examine the effect of EA on TFP. Second,
it attempts to test for the moderating effect of human development on the relation between EA and
TFP,using the generalized methods of moments (GMM), in a panel data across two g roups of countries
based on their human development index during the period 2000-2008. Third, it tests the causality
between TFP, EA, research and development (R&D), unemployment and inflation across countries.
Design/methodology/approach – Cross-countries study using a panel GMM for two groups of
countries based on their human development index during the period 2000-2008.
Findings – Empirical evidence provides that EA have a positive significant relation across countries
on TFP in the higher human development levels. The outcomes point toward the role of policies
supporting EA as a vital tool to accelerate development and growth via channels such as: better
education levels, enhancing R&D, creating more jobs, and stable monetary policy.
Research limitations/implications – From the paper limitation is it focusses only on very high
human and high human development countries and not studying medium and low-development
countries but this limitation is refereed to source of the entrepreneurship data.
Practical implications – This paper provides a comparative analysis of the empirical results and
presents prospective explanations for the observed relationships between different groups of countries
to study the dynamics of change with relative short time series.
Originality/value – The study is of value for policy makers of the impor tant relation between
levels of development among countries as engine to growth via EA. Moreover, the findings provide
a set of policies for governments to undertake tenable actions to accelerate the effectiveness of the
institutional setting.
Keywords Entrepreneurship, Sustainable development
Paper type Research p aper
1. Introduction
Empirical studies tried to assess the relationship between entrepreneurship and
economic growth which is a mysterious relation across countries. This vague link
attracts researchers to uncover these directand indirect factors affectingentrepreneurial
activities (EAs).
This research investigates these missing links across countries and the spillover
factors responsible for accelerating productivity and g rowth. EAs have been studied
and explained by prominent economists making the notion even more complicated and
less clear. There are several classifications to entrepreneurs; among them is the
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2042-5961.htm
Received 3 November 2013
Revised 26 December 2013
Accepted 12 January 2014
World Journal of Entrepreneurship,
Management and Sustainable
Development
Vol. 10 No. 4, 2014
pp. 300-313
rEmeraldGroup PublishingLimited
2042-5961
DOI 10.1108/W JEMSD-11-2013-00 56 JEL Classifications — C13, O47
300
WJEMSD
10,4
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