scholarly journals The Effects of Government Quality and Economic Indicators on Self-employment in East Africa: Panel Data Analysis

2020 ◽  
2020 ◽  
Author(s):  
FIRDISA BIRRU GOSHU

Abstract Self-employment plays a major role in the economic growth of Africa in general and East African countries in particular. It is a major source of new jobs and a way of employing the entrepreneurial abilities of the population. Moreover, self-employment allows people to do what they want and to follow their passion. However, populations in East Africa face various barriers that hinder their ability to start their own business and/or to become self-employed. Thus, the aim of this study is to examine the effects of government quality and economic indicators on self-employment. Data was taken for this study from World Bank’s World Development Indicators, Worldwide Governance Indicators, African development Bank and United Nations Development Program for eight East African countries for 2010-2018. The countries were selected based on the availability of panel data. The fixed effects result indicated that political Stability, control of corruption indices and Voice and accountability, natural logarithm of electricity access, mobile phone subscriptions, people living below income poverty line and primary education enrolment are favorably affecting self-employment in East Africa. The result also shows that the natural logarithm of employment in industry and real GDP growth have negative coefficients. . These findings suggest that in addition to economic and social indicators government quality have greater effect on self-employment in East Africa.


2020 ◽  
Vol 19 (3) ◽  
pp. 339-357
Author(s):  
Papar Kananurak ◽  
Aeggarchat Sirisankanan

Purpose There are several different factors that can influence self-employment. However, there is little evidence stemming from direct examination of the impact of financial development (FD) on self-employment. This study aims to formulate empirical specification models to examine the effect of FD on self-employment. Design/methodology/approach Panel data analysis of 136 sample countries was performed during the period from 2000 to 2017. This study initially implemented the new financial index developed by the International Monetary Fund (IMF) to examine the impact of FD on self-employment. Panel data analysis including the pooled model, fixed effect and random effect model has been carried out. Findings The empirical results show that the financial institutions index has a negative significant impact on self-employment by a considerable magnitude, whereas the financial markets index does not show any statistical significance. The results also find that the government effectiveness index is negative and statistically significant on self-employment. Originality/value There are several different factors which can influence self-employment. Nevertheless, there is little evidence for the direct examination of the impact of FD on self-employment. This study investigated the impact of FD on self-employment by using the new FD index created by the IMF. The finding may help policymakers to implement FD along with other institutional policies to control self-employment.


2016 ◽  
Vol 2016 (1) ◽  
pp. 15915
Author(s):  
Peter van der Zwan ◽  
Jolanda Hessels ◽  
Cornelius A. Rietveld

Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh

Financial development could exert various effects on income distribution of a country. By employing Generalized Method of Moment, this paper aims at examining the impacts of credit market depth, one of most used financial development barometers, on income inequality in Vietnam. The empirical findings show that expanding credit market in the country could lead to higher income inequality. We have not found evidence that supports the hypothesis of an inverted U-shaped relation ever introduced by Greenwood and Jovanovich, although this hypothesis may still hold in a sense that Vietnam has not reached to the inflection point to generate such a curve alike.


Author(s):  
Nurdan Gürkan ◽  
Ahmet Ferda Çakmak

The concept of entrepreneurial orientation, which emerges with the development of strategic management, refers to entrepreneurship orientations of businesses. The businesses need resources in other words organizational slack in order to develop their entrepreneurial trends. The organizational slack consists of three slack type. These slack types are available slack, recoverable slack and potential slack. The purpose of this study is to examine whether organizational slack in the businesses has an effect on entrepreneurial orientation. The relationship between organizational slack and entrepreneurial orientation was investigated through 20 companies that were traded in Borsa Istanbul Corporate Governance Index for 2010-2014 period using panel data analysis method. The results of the study indicate the existence of a statistically significant relationship between and the available slack and the recoverable slack with the entrepreneurial orientation in the businesses. According to findings; there was no statistically significant relationship between potential slack and entrepreneurial orientation.


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