Macroeconomic Factors and Birth of New Businesses in Developing Countries: Evidence from a Dynamic System GMM Approach

Othmane Fahim () and Salma Naamane ()
Additional contact information
Othmane Fahim: Mohammed V University – Rabat (Department of Economics), Morocco
Salma Naamane: Moroccan Observatory of the Micro, Small and Medium Enterprise, Morocco

Management and Economics Review, 2021, vol. 6, issue 1, 61-69

Abstract: This paper aims to discuss and determine the nature of relationship between the birth of new enterprises and macroeconomic factors in using a panel data of 73 developing countries for the period of 2006-2018. The study used panel corrected standard error approach (PCSE) and system generalized method of moments (GMM) approach. The main conclusions revealed that foremost economic growth, translated in terms of real gross domestic product per capita, and in terms of variation in demand, has proved to be a positive determining factor in the creation of enterprises. Furthermore, the population growth rate and inflation, while contributing positively to the creation of new enterprises, did not produce the effect that would have been expected, given the relatively low elasticity. Addition, the results also indicate that unemployment rate and employment vulnerability have small negative effects on new firms' creation.

Keywords: economic growth; macroeconomic factors; birth of new firms; PCSE approach; GMM-system (search for similar items in EconPapers)
JEL-codes: C23 M13 O11 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mer.ase.ro/files/2021-1/6-1-5.pdf (application/pdf)

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:rom:merase:v:6:y:2021:i:1:p:61-69

Access Statistics for this article

Management and Economics Review is currently edited by Ciocoiu Nadia Carmen

More articles in Management and Economics Review from Faculty of Management, Academy of Economic Studies, Bucharest, Romania Contact information at EDIRC.
Bibliographic data for series maintained by Ciocoiu Nadia Carmen ().