Exploring the Relationship between Infrastructure and Entrepreneurial Development in BRICS Countries “PMGARDL” approach

Abstract

This article examines the significance of infrastructure in the emergence and development of entrepreneurship, focusing on policies and their interaction with other public support programs. The central issue is to emphasize the importance of considering various types and specificities of infrastructure. The article posits multiple hypotheses regarding the impact of infrastructure on entrepreneurship, with an emphasis on long-term influence. It assumes that incorporating infrastructure into public policies is essential for fostering entrepreneurial growth. Additionally, it suggests that diverse types of infrastructure play a crucial role in the development of an entrepreneurial ecosystem, particularly in technology sectors. The methodology employed in this study is based on the PMG-ARDL method. Researchers used the “TEA” proxy to measure entrepreneurial dynamics and examine the impact of specific infrastructure characteristics. The sample consists of data from BRICS countries, enabling comparisons across institutional contexts and development levels. The main contributions of this study lie in highlighting the importance of infrastructure for entrepreneurship, especially in the long term. Results suggest that public policies should pay special attention to planning and improving infrastructure to energize the entrepreneurial ecosystem. The research also underscores the need for developing new indices to better measure the various specificities of infrastructure.