EconPapers    
Economics at your fingertips  
 

The dynamics among entrepreneurship, innovation, and economic growth in the Eurozone countries

Rudra P. Pradhan, Mak Arvin (), Mahendhiran Nair and Sara E. Bennett

Journal of Policy Modeling, 2020, vol. 42, issue 5, 1106-1122

Abstract: Economic growth in the Eurozone has been lacklustre over the last two decades due to increased global competition from economic players in other regions, economic and financial crisis, and political uncertainties within the zone. To increase the global competitiveness of the region, the European Union launched the Europe 2020 Strategy to raise the level of entrepreneurship and innovation, which are purported to be key drivers of economic growth. The main purpose of this paper is to investigate whether this assertion is true. Thus, the paper investigates the Granger causal relationships among entrepreneurship development, innovation, and economic growth for a sample of the Eurozone countries for the period 2001–2016. Using a vector error-correction model, the study finds that in the long run, both entrepreneurship and innovation stimulate economic growth. In the short run, strong causal links exist but are not always uniform. The results reveal that Eurozone countries should indeed base their growth strategies on policies that promote innovation and policies that create incentives for entrepreneurship.

Keywords: Entrepreneurship; Innovation; Economic growth; Eurozone countries (search for similar items in EconPapers)
JEL-codes: O43 O16 E44 E31 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0161893820300119
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:42:y:2020:i:5:p:1106-1122

DOI: 10.1016/j.jpolmod.2020.01.004

Access Statistics for this article

Journal of Policy Modeling is currently edited by A. M. Costa

More articles in Journal of Policy Modeling from Elsevier
Bibliographic data for series maintained by Nithya Sathishkumar ().

 
Page updated 2021-04-11
Handle: RePEc:eee:jpolmo:v:42:y:2020:i:5:p:1106-1122