The Effect of National Entrepreneurship on National Competitiveness: Linear and Non-Linear Regression Analysis

Abstract

National entrepreneurship and national competitiveness are two basic factors that affect the economic development of countries. In this study, the effect of national entrepreneurship on national competitiveness is examined. Linear and non-linear regression analyzes were applied as research method. Non-linear regression model estimates were obtained with the curve estimation model application. Obtained models are presented comparatively. The sample consists of 52 countries. The national entrepreneurship scores of the countries were obtained from the “Global Entrepreneurship Monitor (GEM)” reports. National competitiveness scores are derived from “Global Competitiveness Index (GCI)” reports. The research period is 2019 before the pandemic. According to the research findings, the model with the highest percentage of explanation among the non-linear models is determined as the "Qubic" estimation model. When the Qubic non-linear model and linear model are compared, both models are found to be significant. In addition, it is concluded that the percentage of explanation of the non-linear model is higher than the linear model. Based on the findings, it has been suggested to develop country-specific entrepreneurship strategies as well as general entrepreneurship strategies in determining national entrepreneurship strategies.