The IUP Journal of Entrepreneurship Development
Factors Influencing Entrepreneurship Ecosystem and Economic Development: Evidence from Cross-Sectional Country-Wise Imbalanced Panel Data Analysis

Article Details
Pub. Date : Sep, 2022
Product Name : The IUP Journal of Entrepreneurship Development
Product Type : Article
Product Code : IJED020922
Author Name : Ajay K Singh and Sanjeev Kumar
Availability : YES
Subject/Domain : Management Journals
Download Format : PDF Format
No. of Pages : 24



This study assessed the factors influencing economic development and entrepreneurship ecosystem using log-linear regression models. It used global entrepreneurship index score as a proxy variable for entrepreneurship ecosystem, and per capita Gross Domestic Product (GDP) as a representative variable for economic development in the regression analysis. It compiled a cross-sectional imbalanced panel data of dependent and explanatory variables for 106 countries during 2006-2019. The models showed that entrepreneurship ecosystem and economic development were positively associated with business density rate, business extent of disclosure index, exports of goods and services, Foreign Direct Investment Net Inflows (FDINI), individuals using the Internet and market exchange rate. Further, entrepreneurship ecosystem was positively associated with economic development and vice versa. Entrepreneurship ecosystem and economic development have a cause-and-effect relationship with each other. The results also show a diverse impact of economic development and entrepreneurship ecosystems in developed and developing countries.


Entrepreneurship ecosystem is useful to increase socioeconomic, science and technological development and innovation (Fritsch and Wyrwich, 2017; Singh and Ashraf, 2020; Singh and Jyoti, 2021; Sabra and Shreteh 2021; and Singh et al., 2022). Entrepreneurship ecosystem favors creation of employment for skilled and unskilled workforce, infrastructure development, and increased production of manufacturing sector and exports of goods and services