Nguyen, Phuc Canh, Nguyen, Bach, Bui, Tung and Su, Thanh (2021). Economic Complexity and Entrepreneurship Density:A Non-Linear Effect Study. Technological Forecasting and Social Change, 173 ,
Abstract
This study examines the link between economic complexity and entrepreneurship density. Testing 53 economies over the period 2006-2016, we find a significant Granger causality from economic complexity to entrepreneurship density, but reverse causality is not supported. Also, we suggest that entrepreneurship density is an inverted-U shaped function of economic complexity. That is, an increase in economic complexity initially facilitates entrepreneurship density as more business opportunities are created. However, beyond a specific threshold, an increase in economic complexity induces higher risks and uncertainties, discouraging entrepreneurial activities. The results remain robust by different estimators and in sub-samples of High-Income Economies and Low-and-Middle-Income Economies.
Publication DOI: | https://doi.org/10.1016/j.techfore.2021.121107 |
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Divisions: | College of Business and Social Sciences > Aston Business School > Economics, Finance & Entrepreneurship College of Business and Social Sciences > Aston Business School > Centre for Personal Financial Wellbeing College of Business and Social Sciences > Aston Business School |
Additional Information: | © 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/ Funding: University of Economics, Ho Chi Minh City, Vietnam. |
Uncontrolled Keywords: | Entrepreneurship,Economic Complexity,Structural changes,Non-Linear,Panel data |
Publication ISSN: | 1873-5509 |
Last Modified: | 16 Aug 2024 07:14 |
Date Deposited: | 12 Aug 2021 12:59 |
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Related URLs: |
https://www.sci ... 5400?via%3Dihub
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PURE Output Type: | Article |
Published Date: | 2021-12-21 |
Published Online Date: | 2021-08-19 |
Accepted Date: | 2021-08-08 |
Authors: |
Nguyen, Phuc Canh
Nguyen, Bach ( ![]() Bui, Tung Su, Thanh |
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Version: Accepted Version
License: Creative Commons Attribution Non-commercial No Derivatives
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