What is the role of public policies to robust international entrepreneurial activities on economic growth? Evidence from cross countries study

Abstract

This paper contributes to the development of the field of international entrepreneurial activities by providing answers to the following questions. Does higher human development generates opportunities to entrepreneurial activities that yield economic growth? Do economic policies generate opportunity that yields higher international entrepreneurial activities? This research employed Generalized Method of Moments (GMM) estimation methodology is selected based on the long term dynamic of the entrepreneurial activities. Analysis is employed using panel data among a group of efficient countries and innovative countries during the period 2004–2008. Empirical results provide a positive significant evidence for the role of human development to accelerate entrepreneurial activities and growth in innovative driven countries. The outcomes point towards the role of policies supporting entrepreneurial activities as a vital tool to accelerate development and growth via channels such as: better education levels, enhancing research and development, attractive taxes policies and stable monetary policy. This paper provides a comparative analysis of the empirical results and presents prospective explanations for the observed relationships between different groups of countries to study the dynamics of change with relative short time series.