Ch. 5 - Evaluating How the Regulatory Ecosystem Promotes Entrepreneurial Activities in Africa

Takouda, Pawoumodom, Dia, Mohamed, Ouattara, Alassane and Konan Vincent de Paul Kouadio
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Takouda, Pawoumodom: Laurentian University
Dia, Mohamed: Laurentian University
Ouattara, Alassane: Centre africain d'études supérieures en gestion - Centre africain d'études supérieures en gestion
Konan Vincent de Paul Kouadio: LEGO - Laboratoire d'Economie et de Gestion de l'Ouest - UBS - Université de Bretagne Sud - UBO EPE - Université de Brest - IMT - Institut Mines-Télécom [Paris] - IBSHS - Institut Brestois des Sciences de l'Homme et de la Société - UBO EPE - Université de Brest - UBL - Université Bretagne Loire - IMT Atlantique - IMT Atlantique - IMT - Institut Mines-Télécom [Paris]

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Abstract: In Sub-Saharan Africa, and globally, entrepreneurship is renowned as an important engine of growth and economic development. In this chapter, we use Operations Research models to study how public institutions encourage entrepreneurship. We present a case study where Principal Component Analysis (PCA) and Data Envelopment Analysis (DEA) methodologies are applied to evaluate the impact of government regulations on the creation of new businesses. We use data from the Doing Business (DB) project of the World Bank for 40 African economies during the period 2014–2018. We propose seven novel composite evaluation measures. Using correlation and consistency analysis, we validate the proposed measures by comparing them to the Start a Business scores from Doing Business. Our subsequent analyses provide relevant robust comparisons and rankings of African economies and allow the identification of best-performing countries in our sample.

Keywords: Principal component analysis; Start a business; Entrepreneurship; Data envelopment analysis; Composite indicators (search for similar items in EconPapers)
Date: 2022
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Published in Masri, H. Africa Case Studies in Operations Research. Contributions to Management Science, Springer, Cham, pp.91-128, 2022, 978-3-031-17008-9

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05483462

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