Empirical Contribution of Human Capital in Entrepreneurship

Noman Arshed · Ramla Rauf · Samra Bukhari

48 citations0/0 files storedGlobal Business Review

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Entrepreneurship Studies and Influences Economic Growth and Productivity Culture, Economy, and Development Studies

Abstract

The empirical effects of entrepreneurship on economic growth through different channels have convinced researchers to coin entrepreneurship as an important indicator. While many studies are exploring the determinants of entrepreneurship, education is the one which is most studied. Empirical studies have discussed that no doubt education leads to entrepreneurship, but different levels of education have different effects. This study isolated different types of education and formed quadratic function in the expectation that the type and incidence of education may change the intentions and environment for the prospective entrepreneur. The estimates of feasible generalized least squares (FGLS) model using 103 countries show that all three levels of education form U-shaped relationship with entrepreneurship in the overall model. This study helps identify the current positioning of countries, suggesting policies with respect to a particular type of education.

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References

1956A Contribution to the Theory of Economic Growth 2007Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance 2019American Economic Review 1995Understanding the small business sector 2015Thinking about U : Theorizing and testing U ‐ and inverted U ‐shaped relationships in strategy research 1999Linking Entrepreneurship and Economic Growth 1999The Sustainability of the Entrepreneurial Orientation—Performance Relationship 2006Entrepreneurship and Economic Growth

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