A dynamic panel data analysis for relationship between technological innovation, entrepreneurship and Economic Growth
DOI:
https://doi.org/10.54960/jfcg.v1i1.3Keywords:
Entrepreneurship, Technological innovation, Economic growth, Dynamic Panel data, causalityAbstract
This manuscript aims to study elements of answers to the effect of adequate entrepreneurial activity that would have effects on economic growth. This paper analyzes the relationship between entrepreneurship and economic growth for a dynamic panel data of developing countries over the 2004–2017 periods. We used two measures of entrepreneurship: the new density and the potential of innovation. We estimated a growth function using the method of static and dynamic panel data. Our results show that the new density and growth are significantly and positively correlated. Our results also show that if the short-term impact of technological innovation on growth is negative, this effect is positive in the long term. This result confirms the theoretical predictions, namely the theory of spillage.
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