les cahiers du mecas
Volume 17, Numéro 1, Pages 97-110
2021-04-23
New Business Creation, Innovation And Economic Development In The Mena Region: A Panel Data Analysis.
Authors : Benghalem Abdelhadi . Sour Ouieme . Medouri Souhir .
Abstract
This piece of research aims to examine the dynamics among innovation, entrepreneurship and economic development in ten selected MENA countries, and to demonstrate whether the three variables have a feedback effect at work. based on three equations, the study applies a balanced panel data with OLS and GLS estimators covering the period 2006-2018. The results report that a feedback effect occurs between both entrepreneurship and innovation in such a way that innovation encourages the development of new companies and this latter produces more innovations due to competitiveness. However, this formula is still ineffective in stimulating economic development across the region, which is further clarified through the econometric result that the level of new business creation has shown a negative effect on GDP per capita.
Keywords
new business creation ; innovation ; economic development ; MENA countries ; panel analysis
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