Intelligence and the Ease of Doing Business: Does Intellectual Class Facilitate Leadership and Entrepreneurship?

Nik Ahmad Sufian Burhan (), Razli Che Razak, Fauzilah Salleh and María Elena Labastida Tovar

MPRA Paper from University Library of Munich, Germany

Abstract: Does the intelligence quotient (IQ) in a nation regulate the ease of doing business in the society? Based on the normal distribution of IQ scores within a nation, the population was classified into three groups, specifically intellectual class, average ability, and non-intellectual class, which were represented by the 95th, 50th, and the 5th percentiles of IQ level respectively. Using a robust regression method with Huber’s weight function, the impact of each IQ class on the ease of doing business (EDB) index was examined. The sub-indicators of the ten business regulatory environment across 71 countries were studied. In this study, the effect of IQ was controlled for the levels of economic freedom, GDP per capita, freedom of corruption, and tertiary education. Results revealed strong evidence that the IQ of the intellectual class had contributed most to the enhancement of the regulatory environment, which is supportive for entrepreneurship. This result was consistent with the term ‘creative minority’ coined by the prominent historian Arnold Toynbee. It was concluded that the IQ of the people from the intellectual class is the most significant factor for creating a business regulatory environment that favours and eases the new and experienced entrepreneurs. This occurs through their competent and virtuous leadership that enhances the quality and efficiency of institutions across countries.

Keywords: doing business; entrepreneurship; intelligence; intellectual class; leadership; non-intellectual class; robust regression (search for similar items in EconPapers)
JEL-codes: J24 L26 O11 Z13 (search for similar items in EconPapers)
Date: 2017-02
New Economics Papers: this item is included in nep-edu, nep-ent, nep-ino, nep-knm and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/77503/1/MPRA_paper_77503.pdf original version (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:pra:mprapa:77503

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().