Definitions and sources of the data (Source: Authors’ own research)
| Variable name | Definition | Source |
|---|---|---|
| Economic growth | GDP per capita | Penn World Table |
| Entrepreneurship | New business density (new licenses per 1000 people aged 15–64) | WDI |
| Employment | The number of persons engaged | Penn World Table |
| Trade openness | The sum of exports and imports as a share of GDP | WDI |
| Foreign direct investment | Foreign direct investment, net inflows (%GDP) | WDI |
| Government consumption expenditure | Public expenditure to GDP | WDI |
| Population | Total population | WDI |
Estimation results of entrepreneurship on economic growth (Source: Authors’ own research)
| Dependent variable: Economic growth | Fixed-effects model | Random-effects model |
|---|---|---|
| Entrepreneurship | 0.032* | 0.001* |
| Employment | 0.843*** | 0.958*** |
| Trade openness | 0.194** | 0.670*** |
| FDI | 0.837** | 0.077** |
| Government consumption expenditure | -0.105 | -0.576 |
| Population | -0.314 | -0.042 |
| Constant | 8.16** | 2.85 |
| Hausman test: CH2 | 70.29 | |
| Hausman test: Prob >CH2 | 0.000 | |
Robustness check results (Source: Authors’ own research)
| - | Dependent variable | Dependent variable |
|---|---|---|
| Ordinary Least Squares (OLS) | 0.014*** | 0.110*** |
| Feasible Generalized Least Squares (FGLS) | 0.056** | 0.028*** |
| Panel-Corrected Standard Errors (PCSE) | 0.013** | 0.039*** |
Estimation results of entrepreneurship on employment (Source: Authors’ own research)
| Dependent variable: Employment | Fixed-effects model | Random-effects model |
|---|---|---|
| Entrepreneurship | 0.031*** | 0.110*** |
| GDP per capita | 0.331*** | 0.224*** |
| Trade openness | 0.267*** | 0.113** |
| FDI | 0. 036** | 1.906** |
| Government consumption expenditure | 0.036 | -0.0892 |
| Population | 1. 008 | 0.736 |
| Constant | 3.926*** | 9.095*** |
| Hausman test: CH2 | 67.09 | |
| Hausman test: Prob >CH2 | 0.000 | |