THE ROLE OF ENTREPRENEURSHIP IN PROMOTING INTERNATIONAL COMPETITIVENESS OF CEE COUNTRIES. A PANEL DATA APPROACH
THE ROLE OF ENTREPRENEURSHIP IN PROMOTING INTERNATIONAL COMPETITIVENESS OF CEE COUNTRIES. A PANEL DATA APPROACH

Summary/Abstract: The main objective of this paper is to analyse the relationship between entrepreneurial activity and the overall economic competitiveness for a set of four Central and Eastern European countries (Hungary, Latvia, Romania and Slovenia) members of the European Union. Also, this paper aims to identify if entrepreneurial motivations can influence the overall economic competitiveness. Our sample was created by selecting the information provided by Global Entrepreneurship Monitor and World Economic Forum. The analysed period was 2007-2016. To test our hypotheses, we used panel data estimation techniques. As dependent variable we considered the Global Competitiveness Index as proxy for the overall economic competitiveness of countries. And, as independent variables we used indicators measuring entrepreneurial activity and motivations. We also selected a set of control variables, represented by economic indicators considered enhancers of efficiency. Our results emphasize that the level and dynamics of entrepreneurial activity but also the motivations of individuals for becoming entrepreneurs are influencing the level of global competitiveness for the analysed CEE countries. Therefore, we show that countries with higher levels of opportunity entrepreneurs have higher levels of competitiveness and, on the other hand, the countries with more entrepreneurs motivated by necessity have lower levels of economic competitiveness.

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