Empirical Investigation for Assessing the Causality of Entrepreneurship Ecosystem With Entrepreneurial Behavior and Attitudes Across Countries

Abstract

This chapter measures the causal association of the entrepreneurship ecosystem (EE) with entrepreneurial behavior and attitudes (EBA) in 47 countries using log-linear regression equations. Entrepreneurship ecosystem index (ENECIN) and entrepreneurial behavior and attitudes index (ENBEATIN) are used as representative variables for EE and EBA, respectively, in regression analysis while ENECIN and ENBEATIN are the composite indexes of 12 and 11 indicators, respectively, using principal component analysis. These indicators are reported as key determinants of EE and EBA as per the global entrepreneurship monitor (GEM). There was a high level of diversity in EE and EBA across countries. EE has a positive impact on EBA and vice versa. The causation of EE and EBA with control variables is detected using the Granger causality test. The findings of this chapter are beneficial for global policymakers to implement appropriate policies to reinforce EE and EBA.