Table 1.
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 |
Table 2.
Estimation results of entrepreneurship on economic growth
(Source: Authors’ own research)
| Dependent variable: Economic growth | Fixed-effects model | Random-effects model |
|---|---|---|
| Entrepreneurship | 0.032* (0.075) | 0.001* (0.079) |
| Employment | 0.843*** (0.000) | 0.958*** (0.000) |
| Trade openness | 0.194** (0.025) | 0.670*** (0.000) |
| FDI | 0.837** (0.020) | 0.077** (0. 040) |
| Government consumption expenditure | -0.105 (0.113) | -0.576 (0.110) |
| Population | -0.314 (0.144) | -0.042 (0.0834) |
| Constant | 8.16** (0.000) | 2.85 (0.48) |
| Hausman test: CH2 | 70.29 | |
| Hausman test: Prob >CH2 | 0.000 | |
Table 3.
Estimation results of entrepreneurship on employment
(Source: Authors’ own research)
| Dependent variable: Employment | Fixed-effects model | Random-effects model |
|---|---|---|
| Entrepreneurship | 0.031*** (0.005) | 0.110*** (0.000) |
| GDP per capita | 0.331*** (0.000) | 0.224*** (0.000) |
| Trade openness | 0.267*** (0.000) | 0.113** (0.014) |
| FDI | 0. 036** (0.021) | 1.906** (0.011) |
| Government consumption expenditure | 0.036 (0.367) | -0.0892 (0.209) |
| Population | 1. 008 (0.221) | 0.736 (0.278) |
| Constant | 3.926*** (0.006) | 9.095*** (0.001) |
| Hausman test: CH2 | 67.09 | |
| Hausman test: Prob >CH2 | 0.000 | |
1 Notes: See note in Table 2.
Table 4.
Robustness check results
(Source: Authors’ own research)
| - | Dependent variable Economic growth | Dependent variable Employment |
|---|---|---|
| Ordinary Least Squares (OLS) | 0.014*** (0.000) | 0.110*** (0.000) |
| Feasible Generalized Least Squares (FGLS) | 0.056** (0.025) | 0.028*** (0.000) |
| Panel-Corrected Standard Errors (PCSE) | 0.013** (0.031) | 0.039*** (0.002) |
1 Notes: See note in Table 2.