International Journal of Computer Science & Network Security

International Journal of Computer Science & Network Security (국제컴퓨터통신보호논문지학회)
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ON THE DETERMINANTS OF ENTREPRENEURSHIP IN MIDDLE EAST AND NORTH AFRICA

  • Published : 2021.02.28
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Abstract

The purpose of this study is to examine empirically the short- and long-run determinants of entrepreneurial activity in a sample of 15 the Middle East and North African economies between 2006 and 2018. More specifically, four groups of determinants are considered in the analysis, namely economic, demographic, business environment, and institutional. Given the autoregressive feature of the entrepreneurial activity process, a dynamic panel data model is estimated using the system GMM estimator. Findings reveal that unemployment, trade openness, population density, and economic freedom are the main drivers of new business creation in the short-run, while the cost and number of procedures to start a new business negatively affect entrepreneurship. In the long-run, the same findings hold true. Moreover, education and political stability and the absence of violence/terrorism positively affect entrepreneurial activity. Policy recommendations are accordingly designed.

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Acknowledgement

The authors gratefully acknowledge the approval and the support of this research study by the grant no. BA-2019-1-10-F-8339 from the Deanship of Scientific Research at Northern Border University, Arar, K.S.A.

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