Can policy makers count with positive impact of entrepreneurship on economic development of the Czech regions?

2017 ◽  
Vol 9 (3) ◽  
pp. 286-299 ◽  
Author(s):  
Ondřej Dvouletý
Keyword(s):  
Economic Development ◽  
Fixed Effects ◽  
Positive Impact ◽  
Negative Relationship ◽  
Policy Implications ◽  
Entrepreneurial Activity ◽  
Gdp Per Capita ◽  
Content Type ◽  
Per Capita ◽  
The Impact

Purpose The purpose of the present study is to empirically investigate the impact of the newly established entrepreneurial activity on economic development of the Czech NUTS 3 regions during the period of years 2003-2015. Design/methodology/approach An econometric approach was used to validate the stated hypotheses assuming a positive relationship between the new entrepreneurial activity and regional economic growth and a negative relationship between the new entrepreneurial activity and unemployment rate. For the methods, regression models with fixed effects were estimated on the panel that included 13 Czech regions, covering the period of years 2003-2015. The new entrepreneurial activity was classified into two forms – rate of newly established self-employed set-ups per capita and rate of newly established business companies and partnership set-ups per capita. Findings Different impacts of newly established business companies and the self-employed were found on real gross domestic product (GDP) per capita. Only the higher rates of newly established business companies and partnership were associated with higher levels of GDP per capita in the Czech regions, and no impact was found for the rate of new self-employed set-ups. Nevertheless, both forms of newly established entrepreneurial activity were associated with lower unemployment rates in the Czech regions; however, the impact of newly established business companies was significantly higher. The obtained results have several policy implications, which are discussed in the present paper. Practical implications Support of entrepreneurship in the Czech regions may improve the situation on the local labour markets and may deliver new job opportunities through the newly established enterprises. The Czech entrepreneurship policies focused on the growth of GDP and economic boom should be oriented more on the support of high-growth enterprises (unicorns). Originality/value The empirical analysis was conducted on the basis of the research gap in the studies related to the impact of the newly established entrepreneurial activity on the economic development of the Czech regions. Obtained results have several policy implications, which are discussed in the present paper.

Energy consumption flow and regional economic development: evidence from 25 economies

2017 ◽  
Vol 12 (1) ◽  
pp. 96-118 ◽  
Author(s):  
Bao-jun Tang ◽  
Pi-qin Gong ◽  
Yu-chong Xiao ◽  
Huai-yu Wang
Keyword(s):  
Cluster Analysis ◽  
Economic Development ◽  
Energy Consumption ◽  
Negative Relationship ◽  
Regional Economic Development ◽  
Embodied Energy ◽  
Gdp Per Capita ◽  
Regional Economic ◽  
Content Type ◽  
Per Capita

Purpose This paper aims to figure out the relationship between energy consumption flow from a new perspective of embodied energy inventory index (EEII) and regional economic growth. Design/methodology/approach The input-output approach has been applied to calculate embodied energy inventory (EEI) and EEII using the data of 25 economies. Meanwhile, cluster analysis and panel data modeling were applied to carry out detailed research. Findings The results of cluster analysis show that there is a roughly negative relationship between EEII and gross domestic product (GDP) per capita, although there are some exceptions, such as Russia and Taiwan (Province of China). Panel data model results provide further evidence that there is a negative relationship between EEII and GDP per capita. Population is an important productive factor in the regional economic development. The study showed a positive relationship between EEII and population. Therefore, energy consumption flow is closely related to regional economic development. Originality/value The value of this paper is to use EEI and EEII to comprehensively clarify the energy consumption flow. The advantage of EEII is that it can reflect the energy embodied in fixed assets and infrastructure.

The impact of financial inclusion on economic development: the mediating roles of gross savings, social empowerment and economic empowerment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rajib Chakraborty ◽  
Rebecca Abraham
Keyword(s):  
Economic Development ◽  
Financial Inclusion ◽  
Gdp Per Capita ◽  
Primary Data ◽  
Equation Modeling ◽  
Economic Empowerment ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
Social Empowerment

PurposeThe purpose of this paper is to measure the impact of financial inclusion on economic development.Design/methodology/approachStudy 1 used World Bank Data to develop financial inclusion percentages of ownership of checking accounts, savings accounts, debit cards and loans for 179 countries among the poorest 40% of the population, from 2011–2017. Regressions established the financial inclusion, gross savings and GDP per capita growth linkage. Study 2 created and validated scales to measure social empowerment, economic empowerment and economic development, among inhabitants of Bangladesh villages. Structural equation modeling measured the mediation by social empowerment and economic empowerment of the financial inclusion and economic development linkage.FindingsTotal financial inclusion was significantly explained by gross savings, which was significantly explained by GDP per capita growth. Ownership of a checking account significantly increased gross savings, while ownership of a savings account significantly increased GDP per capita growth. Ownership of a checking account differentiated countries with the highest 5% of gross savings, while ownership of a debit card significantly differentiated countries with the GDP per capita growth. Social empowerment and economic empowerment significantly mediated the financial inclusion and economic development relationship.Originality/valueThe study is unique in examining financial inclusion from a multi country, macroeconomic perspective combined with measurement of its theoretical underpinnings through a primary data-based sample extracted from respondents in Bangladesh, a lower middle-income country in Southeast Asia.

scholarly journals Exploring the Effects of Types of Early-Stage Entrepreneurial Activity on Subjective Well-Being

2021 ◽  
Author(s):  
Mojca Svetek ◽  
Mateja Drnovsek
Keyword(s):  
Economic Development ◽  
Panel Data ◽  
Fixed Effects ◽  
Positive Impact ◽  
Early Stage ◽  
National Level ◽  
Well Being ◽  
Entrepreneurial Activity ◽  
Subjective Well Being ◽  
The Impact

AbstractEntrepreneurial activity has been seen as the single most important activity of individuals due to its role in the economic development of nations. However, little is known about the impact of entrepreneurial activity on the subjective well-being of nations beyond its economic impact. The purpose of this study is to explore the impact of different types of entrepreneurial activity – total entrepreneurial activity, opportunity-driven entrepreneurial activity and innovative entrepreneurial activity – on subjective well-being across nations. We consider three distinct mechanisms by which entrepreneurship may influence subjective well-being at the national level. Our panel data includes representative country-level data from 2008 to 2015 from five different data sources for 31 European countries. We employ four econometric models for analyzing the panel data: pooled OLS regression (POLS), fixed effects model (FE), random effects model (RE), and simultaneous equations model (3SLS). Our results suggest that opportunity-driven entrepreneurial activity has a positive impact on subjective well-being. In addition, we find that subjective well-being affects the level of opportunity-driven and innovative entrepreneurial activity. These findings have implications for policy-makers seeking to promote not only economic development but also subjective well-being in the nation.

Determinants of Nordic entrepreneurship

2017 ◽  
Vol 24 (1) ◽  
pp. 12-33 ◽  
Author(s):  
Ondřej Dvouletý
Keyword(s):  
Fixed Effects ◽  
Negative Impact ◽  
Positive Impact ◽  
Entrepreneurial Activity ◽  
Policy Makers ◽  
Content Type ◽  
Perceived Need ◽  
The Times ◽  
The Impact

Purpose The purpose of this paper is to analyse the determinants of entrepreneurial activity in the Nordic countries over the period of years 2004-2013 to provide supportive material for the Nordic entrepreneurial policy makers with specific focus on the role of necessity/opportunity-driven entrepreneurship, administrative barriers and the research and development (R&D) sector. Design/methodology/approach Quantitative study employed panel regression analysis with fixed effects estimator to test the impact of determinants on entrepreneurial activity operationalized as a rate of registered business activity and as an established business ownership rate. Findings The results obtained for the both dependent variables did not substantially differ from each other or the supported hypothesis stating a positive relationship between unemployment rate, GDP per capita and entrepreneurial activity. Also a negative impact of administrative barriers was found. However, no statistically significant positive impact of the R&D sector was observed. Practical implications Nordic entrepreneurial policy makers should put more effort into the reduction of administrative barriers towards founding enterprises and support entrepreneurship during the times of higher unemployment rates. Further evaluation of Nordic R&D policies is strongly needed, since no positive impacts towards entrepreneurship were found. Originality/value The empirical analysis was conducted based on the research gap in the studies related to the Nordic entrepreneurial policies and perceived need for the policy recommendations that are provided.

Farm wages and public works

2015 ◽  
Vol 8 (1) ◽  
pp. 19-72 ◽  
Author(s):  
Kanika Mahajan
Keyword(s):  
Theoretical Model ◽  
Wage Rate ◽  
Fixed Effects ◽  
Positive Impact ◽  
Wage Growth ◽  
State Level ◽  
Random Allocation ◽  
Farm Sector ◽  
Content Type ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of National Rural Employment Guarantee Scheme (NREGS) on farm sector wage rate. This identification strategy rests on the assumption that all districts across India would have had similar wage trends in the absence of the program. The author argues that this assumption may not be true due to non-random allocation of districts to the program’s three phases across states and different economic growth paths of the states post the implementation of NREGS. Design/methodology/approach – To control for overall macroeconomic trends, the author allows for state-level time fixed effects to capture the differences in growth trajectories across districts due to changing economic landscape in the parent-state over time. The author also estimates the expected farm sector wage growth due to the increased public work employment provision using a theoretical model. Findings – The results, contrary to the existing studies, do not find support for a significantly positive impact of NREGS treatment on private cultivation wage rate. The theoretical model also shows that an increase in public employment work days explains very little of the total growth in cultivation wage post 2004. Originality/value – This paper looks specifically at farm sector wage growth and the possible impact of NREGS on it, accounting for state specific factors in shaping farm wages. Theoretical estimates are presented to overcome econometric limitations.

Macro-economic Factors Influencing Tourism Entrepreneurship: The Case of Kazakhstan

2021 ◽  
pp. 097135572098143
Author(s):  
Aizhan Tleuberdinova ◽  
Zhanat Shayekina ◽  
Dinara Salauatova ◽  
Stephen Pratt
Keyword(s):  
Economic Development ◽  
Emerging Economies ◽  
Negative Relationship ◽  
National Income ◽  
Tourism Development ◽  
Entrepreneurial Activity ◽  
Macroeconomic Factors ◽  
Distributed Lag ◽  
Tourism Sector ◽  
The Impact

Tourism development contributes to economic development. In emerging economies like Kazakhstan, tourism development needs active entrepreneurship. As the country emerges from the post-Soviet era, there has been an increase in economic development and prosperity. Entrepreneurship in the tourism sector can drive economies forward through the creation of new tourism and hospitality businesses. The macroeconomic environment can influence entrepreneurial activity. We use an autoregressive distributed lag (ARDL) model to examine the impact of macroeconomic factors on tourism entrepreneurship in Kazakhstan. Using data from 1996 to 2018, we find that there is a positive short-run relationship between wages in the tourism sector and entrepreneurship, suggesting that wage growth in the sector attracts entrepreneurs. In the long run, however, tourism sector wages have a negative relationship with entrepreneurship, suggesting that these higher wages represent a higher cost to entrepreneurship. There is also a strong positive relationship between national income and tourism entrepreneurship in Kazakhstan. Implications of macroeconomic policy changes for Kazakhstan and other emerging economies are discussed.

scholarly journals Impact of unemployment and income on entrepreneurship in post-apartheid South Africa: 1994–2015

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Employment Growth ◽  
Positive Impact ◽  
Early Stage ◽  
National Development ◽  
Entrepreneurial Activity ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Impact

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.

Do discretionary accruals affect firms’ corporate dividend policy? Evidence from France

2018 ◽  
Vol 16 (2) ◽  
pp. 333-347 ◽  
Author(s):  
Anis Ben Amar ◽  
Olfa Ben Salah ◽  
Anis Jarboui
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Negative Relationship ◽  
Discretionary Accruals ◽  
Additional Measure ◽  
Ample Evidence ◽  
Content Type ◽  
The Impact

Purpose In financial literature, dividend payout decisions are determined by factors such as debt, liquidity, profitability, size and risk. The purpose of this paper is to identify the effect of earnings management measured by discretionary accruals based on Dechow et al.’s (1995) model on dividend policy. Design/methodology/approach This research will use panel data analysis to test the effect of earnings management on dividend policy. The authors selected 280, French non-financial companies, listed on the CAC All Tradable index for the 2008-2015 period. Findings Using a sample of 2108 firm-year observations, the authors find a positive impact of earnings management on dividend policies of firms. Besides, there is a positive/negative relationship between the size of the firm and the dividend policy. Moreover, this paper has dealt with some factors such as debt, the risk of the firm and liquidity which may affect the corporate dividend policy. The results are robust as the authors adopted an additional measure of dividend policy. Practical implications The findings may have important implications for analysts, investors, regulators and academics. First, the study shows that earnings management is a common practice in the French context and constitutes a major objective of dividend policy. Better still, identifying the other variables that influence the dividend policy provides a clearer understanding of dividend policy for investors, analysts and academics alike. Second, the study provides ample evidence of agency problems between various partners in French capital markets, highlighting the necessity to establish new corporate governance mechanisms. This is highly relevant for policymakers in their quest for a better financial market. Originality/value This study extends the literature on the impact of dividend thresholds on earnings management by showing that firms run earnings to inform the market that the company can distribute dividends.

Can labor productivity growth reduce carbon emission? Evidence from OECD countries and China

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xueli Chen ◽  
Wanshu Ma ◽  
Vivian Valdmanis
Keyword(s):  
Labor Productivity ◽  
Fixed Effects ◽  
Oecd Countries ◽  
Environmental Indicators ◽  
Ekc Hypothesis ◽  
Initial Development ◽  
Content Type ◽  
Per Capita ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this study is to examine the challenges involved in the trade-offs of labor productivity and per capita carbon dioxide (CO2) emission.Design/methodology/approachIn this research, we used a balanced dataset of 36 OECD countries and China between 1990 and 2018. We examined the relationship between labor productivity and per capita CO2 emission for OECD countries and China based on an Environmental Kuznets Curve (EKC) hypothesis. Further, the fixed effects model of estimation was employed to examine the impact of variables during the sample period and explore the relationship between predictor and outcome variables within an entity while controlling for all time-invariant differences.FindingsThis study confirmed the existence of the N-shape EKC hypothesis in 36 OECD countries and China. This implies that at the initial development stage, per capita CO2 emission increased with labor productivity; however, after reaching certain threshold, per capita CO2 emission began to fall with rising labor productivity. Then the per capita CO2 emission rises again when labor productivity continually increases.Originality/valueIn this study, we explored the dynamic association between labor productivity and per capita CO2 emissions for 36 OECD countries and China under the EKC framework from 1990 to 2018 by using the labor productivity and per capita CO2 emission as economic and environmental indicators of one country respectively. This study’s contribution showed the following: first, the empirical findings confirmed the N-shape relationship between labor productivity and per capita CO2 emissions for 36 OECD countries and China; second, the findings demonstrated that the association among the underlying variables by testing through the fixed effect model.

scholarly journals The relationship between debt and a firm’s performance: the impact of institutional factors

2019 ◽  
Vol 45 (9) ◽  
pp. 1272-1291 ◽  
Author(s):  
Rosa Forte ◽  
José Miguel Tavares
Keyword(s):  
Fixed Effects ◽  
Negative Relationship ◽  
Research Area ◽  
Institutional Framework ◽  
Market Regulation ◽  
Fixed Effects Model ◽  
Content Type ◽  
Macroeconomic Variables ◽  
The Impact ◽  
The Relationship

Purpose The purpose of this paper is to contribute to the existing literature on the relationship between debt and firms’ performance, by focusing on the influence of the institutional framework on this relationship and on the role of macroeconomic variables in explaining performance. Design/methodology/approach The present work is based on a large sample of 48,840 manufacturing firms from nine European countries covering the 2008–2013 period and uses a fixed effects model. Findings Results show that the impact of debt on a firm’s performance depends on the measure of debt (short-term debt positively affects a firm’s performance, whereas long-term debt presents a negative relationship) and that the institutional framework is indeed affecting the relationship between debt and a firm’s performance: the positive effect of debt on a firm’s performance tends to be higher the greater the “efficiency of the legal system” and the greater the “credit market regulation.” Macroeconomic variables also play a key role in explaining performance. Originality/value Unlike most of the existing studies, which focus only on the relationship between debt and firms’ performance in a single country, the present work uses a sample of firms from nine countries with the purpose of filling a research gap and bringing new empirical evidence to this research area.

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