Assessing the Relationship between Entrepreneurship and Economic Development in the MENA Region: An Empirical Investigation, Dr. Abdelhadi Benghalem, Prof. Samir Maliki, Dr. Mourad Kertous and Dr. Nathalie Hilmi
Dr. Abdelhadi Benghalem
Permanent Researcher, Mecas Laboratory
University of Tlemcen, BP 226, Tlemcen
Prof. Samir Baha-Eddine Maliki
Professor of Economics and Business
University of Tlemcen, BP 226, Tlemcen, 13000
Dr. Mourad Kertous
Associate Professor of Economics
Dr. Nathalie Hilmi
Head of Environment Department, Centre scientifique de Monaco
Design/methodology/approach: Two different indicators of entrepreneurship are used; self-employment rates and the number of new business formations. The study employed four control variables: human capital, the money supply, governance quality, and foreign direct investment. We use an econometric analysis based on panel data with fixed and random effects methodology (for every year) to test the feed-back effects between entrepreneurship, economic development, and other control variables in the MENA region.
Findings: Our empirical analysis suggests that the effectiveness of entrepreneurship in generating economic development in the MENA region is not related to the number of self-employed but to the creative and imitative entry of existing businesses into new markets. On the other hand, the growth of new businesses is insufficient to spur the economy unless good governance quality manages entrepreneurship in the region.
Originality/value: This research adds to the literature in two ways: first, we provide new insights into the effect of two types of entrepreneurship (self-employment rate/new business formation) on economic development in the MENA region. Secondly, our research innovates in the selection of control variables to investigate factors that relate entrepreneurship to economic development. Additionally, the novelty of this paper is to analyze the relationship between entrepreneurship and economic development in the MENA region for a new period and new combinations of intermediates variables.
Keywords: Entrepreneurship, Economic Development, Governance quality, MENA Countries.
Development in the MENA Region: An Empirical Investigation. World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 18, No. 5, pp. 555–573.