Entrepreneurship And Economic Growth Nexus: Econometric Evidence From Brics Countries

Abstract

Summary: The purpose of this paper is to investigate the impact of entrepreneurship on economic growth, with GDP per worker as the dependent variable, and entrepreneurship as measured by the Global Entrepreneurship Index (GEI), Business Freedom (BUSfr), and Starting a Business (STRbus) as independent variables, as well as other macroeconomic control variables (Gross capital formation, Index of Economic Freedom, Trade openness, Human Development Index, and Government Expenditure). The data set includes BRICS countries (Brazil, Russia, India, China, and South Africa) from 2004 to 2020. The estimate findings of the fixed effects panel data model of the five BRICS countries utilizing (Driscoll & Kraay, 1998) standard errors approach revealed a significantly positive influence of Business Freedom (BUSfr) and Starting a Business (STRbus) on economic growth; and an insignificantly impact of Global Entrepreneurship Index (GEI).