The impact of entrepreneurship on economic growth: Empirical evidence in the Mekong Delta

Abstract

Entrepreneurship is the main motivation of economic development, a large amount of literature analyzing the impact of entrepreneurship on solid growth and survival has appeared. This paper aims to quantify the impact of entrepreneurship on economic growth using a balanced panel data of 8 provinces in the Mekong Delta region over 20 years. Two indicators of entrepreneurship (Private Employment Rate, Self-Employment Rate) are identified and incorporated into the traditional growth regression model demonstrated using the Feasible Generalized Least Square (FGLS) method. The results show that entrepreneurship has a positive impact on economic growth and this finding is very strong through the private employment rate of 8 Mekong Delta provinces but does not provide enough evidence that the self-employment rate has a positive impact on growth. Public policies that promote entrepreneurship should be expected to positively influence economic growth