Dynamics of entrepreneurial activity in the Gulf Cooperation Council countries: the role of economic factors, global trade and digital infrastructure

Ihsen Abid

Journal of Enterprising Communities: People and Places in the Global Economy, 2025, vol. 20, issue 1, 152-175

Abstract: PurposeThis study aims to investigate the determinants of entrepreneurial activity in the Gulf Cooperation Council (GCC) countries for the period 2016–2023.Design/methodology/approachUsing the Arellano–Bond estimator to address endogeneity in dynamic relationships, this study analyzes the relationship between entrepreneurial activity and key economic variables such as foreign direct investment (FDI), market capitalization (CAP), trade (TRA), secure internet servers (INTS) and gross domestic product (GDP).FindingsThe results reveal that macroeconomic factors (FDI, CAP, GDP and digital infrastructure) and external factors (TRA) significantly affect entrepreneurial activity. Specifically, FDI, CAP, INTS, and GDP positively influence total entrepreneurial activity, while TRA has a negative impact. In addition, the dynamic nature of entrepreneurial activity, highlighted by the significant lag coefficient, underscores the importance of past activity in shaping current trends.Originality/valueThis study provides valuable insights for policymakers aiming to foster entrepreneurship, suggesting that enhancing foreign investment, developing financial markets, strengthening digital infrastructure and ensuring economic stability are key to promoting entrepreneurial activity in the GCC countries.

Keywords: Economic growth; Econometrics; Entrepreneurship; Case study; Capital (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jecpps:jec-01-2025-0014

DOI: 10.1108/JEC-01-2025-0014

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