Economic complexity and entrepreneurship: insights from Africa

Ajide, Folorunsho M.

doi:10.1108/ijdi-03-2022-0047

Cited by 22 publications

(23 citation statements)

References 80 publications

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“…Rubbo et al (2021) confirmed that innovation and economic complexity have significant effects on firm productivity in BRIC nations. Contrary to Nguyen et al (2021), the study of Ajide (2022) did not confirm a nonlinear relationship between entrepreneurship and economic complexity.…”

Section: Literature Review and Hypothesis Developmentcontrasting

confidence: 66%

“…They suggest that after a certain threshold, economic complexity may reduce entrepreneurship, possibly due to the saturation of the entrepreneurs in the system, which lead to highly competitive forces. This action creates a potential threat to latent entrepreneurs and suppresses the inflow of new business creation (Ajide, 2022). The coefficient of economic growth was negative and significant.…”

Section: Resultsmentioning

confidence: 99%

“…Moreover, my choice of control variables was informed by the extant literature. The control variables included: economic complexity (ECOCI) as a proxy for economic transformation (see Nguyen et al, 2021;Ajide, 2022), foreign direct investment (FDI) to proxy the presence of multinational firms in the economy which may influence the intention to engage in entrepreneurial activities (Munemo, 2018;Ajide & Soyemi, 2022), the inflation rate was used to capture the level of macroeconomic volatility (Ajide, 2022;Gomes & Ferreira, 2022). The LGDPPC represents economic growth (Chambers & Munemo, 2019;Asongu et al, 2018).…”

Section: Research Methodology Data Sources and Model Specificationmentioning

confidence: 99%

“…Entrepreneurial actions are the driving forces for firm creation and economic dynamics. It is the force that pushes the economic system out of equilibrium through innovation and technology; leading to new products and other innovative activities (Ajide, 2022). Latent entrepreneurship theory can be rooted in the theory of reasoned or planned behaviour (Linan & Chen, 2006;Ajzen & Fishbein's, 1975;Shapero & Sokol, 1982;Fatoki & Chindoga, 2012).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…| 145 Mishra and Zachary (2014) propose entrepreneurial value creation theory which enables economists to incorporate economic variables in the entrepreneurship model. It is believed that there are many economic factors influencing entrepreneurial mindsets which include: competitiveness and innovation, the level of the country's economic transformation proxy by economic complexity (Nguyen et al, 2021;Ajide, 2022), foreign direct investment (Munemo, 2018), business regulation (Chambers & Munemo, 2019), monetary and fiscal policy, economic globalization, income, and remittance among others (Rosser, 2010;Coulibaly et al, 2017;Ajide et al, 2021). In the same vein, entrepreneurial value creation offers a holistic approach to the complex and disordered activities in entrepreneurial processes as a multidisciplinary study.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

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Impact of tourism development on latent entrepreneurship in BRICS

Ajide¹

2022

EBER

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The study aims to examine the impact of tourism development on latent entrepreneurship in BRICS countries (Brazil, Russia, India, China, and South Africa). Research Design & Methods:The study used panel data of BRICS countries for the period of 2001-2020. The article employs the quantitative method including the panel dynamic ordinary least square approach to analyse the data. Findings: The results showed that tourism provides greater opportunities for latent entrepreneurs in BRICS countries. The results of the control variables showed that economic complexity did not spur entrepreneurial inspiration while foreign direct investment improves entrepreneurial development in BRICS economies. Implications & Recommendations:The study concluded that policymakers should concentrate efforts on improving the tourism sector to accelerate the pace of entrepreneurial development. Appropriate policies should be implemented to further ease the business activities in the group of BRICS economies. Contribution & Value Added:The study adds value to the literature by providing an empirical analysis of the nexus between tourism development and entrepreneurship. The study focused on BRICS countries to see how tourism development springs up entrepreneurial inspiration among adults in emerging economies. The study models entrepreneurship function within the framework of the panel co-integrating regression approach. This is a powerful technique that accounts for endogeneity and serial correlation based on the firstdifferent stationary of the variables.

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Section: Literature Review and Hypothesis Developmentcontrasting

confidence: 66%

Section: Resultsmentioning

confidence: 99%

Section: Research Methodology Data Sources and Model Specificationmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

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Impact of tourism development on latent entrepreneurship in BRICS

Ajide¹

2022

EBER

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Remittances, economic complexity, and new firms’ creation: empirical evidence from a large sample of countries

Piras

2023

Econ Change Restruct

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One of the most debated issues in migration economics regards the effects of remittances in receiving countries. In this paper, we test whether the economic complexity of a country is relevant for understanding the impact of remittances on new firms’ birth. We find evidence that the impact of real per capita remittances on new firms’ creation is inversely mediated by economic complexity. More (less) complex economies generate opportunities to found new firms which need high (low) funding. Since economic complexity is positively correlated with economic development, remittances are more likely to facilitate the establishment of new firms in less developed economies rather than in more advanced ones. We also examine the link between remittances and new firm creation for Africa, Asia, Europe, and Latin America and the Caribbean countries, finding very heterogeneous patterns. Hence, policy implications aiming at attracting remittances to create new firms should respond to the challenges posed by specific countries and be tailored to their peculiar needs. Countries of origin should build institutions and facilitate the creation of networks to bridge the diaspora abroad with their home country to increase awareness of new business opportunities. Policy initiatives could spur investment in the formal economy by making regulations less stringent, discouraging the use of remittances for consumption purposes, reducing informality, improving competition, reducing remittance transfer costs, and giving incentives to new firms created through remittances.

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Does information and communication technologies affect economic complexity?

2023

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Information and communication technology (ICT) and economic complexity are two concepts that have been extensively used in the recent literature. However, studies linking these two concepts are still at a premature stage and few existing studies have focussed on the role of the internet in a short-term context. Indeed, ICT measures the percentage of the population with access to the internet while economic complexity quantifies the set of productive capabilities and know-how embedded in the production process. This study aims to examine for the first time the long-term effect of ICT (quality and quantity) on economic complexity in a large panel of 112 countries over the period 1986–2017. The detailed analysis explores the long run and directional relationships using the homogeneity test, the cross-sectional dependence test, stationary tests in the presence of cross-sectional dependence, the panel cointegration test, dynamic OLS (DOLS), fully modified OLS (FMOLS), and the Granger panel causality test. The study finds long-run relationships between ICT, economic complexity, per capita GDP, government spending, and natural resources. Cointegration regression shows that the quality and especially the quantity of ICT, economic growth, and government spending have a positive and significant effect on economic complexity in the long run. Similarly, the results show that natural resource rent significantly impedes economic complexity. Finally, the results of the Granger causality test confirm the existence of a bidirectional relationship between ICT and economic complexity. Supplementary Information The online version contains supplementary material available at 10.1007/s43546-023-00467-8.

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Economic complexity and entrepreneurship: insights from Africa

Cited by 22 publications

References 80 publications

Impact of tourism development on latent entrepreneurship in BRICS

Impact of tourism development on latent entrepreneurship in BRICS

Remittances, economic complexity, and new firms’ creation: empirical evidence from a large sample of countries

Does information and communication technologies affect economic complexity?

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