Economic globalization, entrepreneurship, and development

Abstract

If economic integration and mutual reliance between local or global entities result from a borderless and relatively free flow of production factors as well as goods and services, small business practice, innovation and risk ventures will objectively yield profits. In the context of BRICS11BRICS is an acronym for the world's major emerging economies Brazil, Russia, India, China, and South Africa. It was originally BRIC as coined by Goldman Sachs's Jim O'Neill excluding South Africa. These nations are projected, by 2050 to be wealthier than the current major economic powers. (Brazil, Russia, India, China, and South Africa) nations, have both phenomena enhanced rapid economic development? Using an unbalanced panel dataset for BRICS member states, we investigate these propositions by estimating the effects of: a comprehensive globalization index variable (KOF) as in Dreher (2006) and Samimi et al. (2014) and an opportunity total entrepreneurship activity (OTEA) variable à la Urbano and Aparicio (2016) through an Arellano-Bond model estimator first, then a dynamic estimation model next. Results show, after utilizing both estimation techniques, the variables were all positive and statistically significant, hence confirming the hypothesis. We posit the implementation of innovation-driven policies that will promote the movement of production factors, enhance South-South financial and regional trade agreements and sustain economic development in developing nations in general and BRICS economies in particular.