OPPORTUNITY AND NECESSITY ENTREPRENEURSHIP AND ECONOMIC GROWTH: THE MODERATING EFFECT OF HUMAN CAPITAL

• Type: Article in International Scientific Journal
• Date: 2020

Authors

Rodrigues, D (Author) Other; Aurora Teixeira (Author) FEP

Journal

Title: Journal of Developmental Entrepreneurship

Vol. 25 No. 4

ISSN: 1084-9467

Publisher: World Scientific

Indexing

ISI Web of Knowledge - 10 Citations

Scopus - 11 Citations

Other information

Authenticus ID: P-00T-A98

DOI: 10.1142/s1084946720500259

Abstract (EN): Although considerable research has been devoted to the study of the effect of entrepreneurship on economic growth, fewer studies have analyzed the effect of the types (opportunity vs necessity) of entrepreneurship on economic growth. Moreover, the latter set of studies overlooked the relevance of human capital as a mediating factor in the relation between (types of) entrepreneurship and economic growth. The aim of the present study is to fill in this gap by assessing the extent to which the direct and indirect effect of (the types of) entrepreneurship, via human capital, matters for countries' economic growth. In methodological terms, we resort to fixed effects panel data estimations, involving a large set of (OECD and non-OECD) countries, over a relatively long time span (1990-2016). The results suggest total entrepreneurship has a positive effect on economic growth. Distinguishing between types of entrepreneurship, there is clear evidence that OE fosters economic growth, whereas necessity entrepreneurship inhibits it. Interestingly, human capital tends to mitigate the negative effect of necessity entrepreneurship on economic growth. In the case of opportunity entrepreneurship, the direct positive effect observed is reduced in contexts characterized by high levels of human capital, which might reflect increased opportunity costs.

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 24