An Investigation into the Determinants of Venture Capital Investment: Evidence from Emerging Economies of Asia Pacific

Abstract

Since the 1980s–90s, Venture capital has grown to be widely considered as an effective source of funding for creative operations besides playing a pivotal role in the development of economies. Focusing primarily on sixteen Emerging economies of Asia-Pacific, the research sheds light on the determinants of venture capital, over the period 2006–2021, coinciding with the peak of venture capital activity in this region. By employing Panel regression analysis, incorporating fixed and random effects, and complementing the findings with Pairwise Granger Causality tests, this scholarly work offers a comprehensive understanding of the distributional and operational characteristics of the Asia-Pacific venture capital market. Moreover, it provides valuable insights for entrepreneurs and policymakers on how to efficiently foster venture capital activities in emergent economies.