Entrepreneurship, entrepreneurial ecosystem and total factor productivity: Comparison of developed and developing countries

Monavarian, Fatemeh; Adabi Firouzjaee, Bagher; Mohammadi Khyareh, Mohsen

doi:10.30465/jnet.2025.52224.2215

Entrepreneurship, entrepreneurial ecosystem and total factor productivity: Comparison of developed and developing countries

Document Type : Research Paper

Authors

Fatemeh Monavarian ¹

bagher adabi firouzjaee ²

Mohsen Mohammadi Khyareh ³

¹ MSC of entrepreneurship management, Department of Administrative Sciences and Economics, Faculty of Humanities and physical education, Gonbad Kavous University, Gonbad Kavous, Iran

² Assistant Professor of Gonbad Kavous University

³ Associated Professor of Economics, Economics Department of Administrative Sciences and Economics, Faculty of Humanities and physical education, Gonbad Kavous University, Gonbad Kavous, Iran

10.30465/jnet.2025.52224.2215

Abstract

e, the main goal of this study is to investigate the intreaction effect of entrepreneurship and entrepreneurial ecosystem on TFP for two groups of countries (developed and developing countries) during 2000-2019 using Systemic Generalized Method of Moments (GMM-SYS). The empirical results of this research show that for both groups of countries, Entrepreneurship can not cause TFP promotion, solely. However, the entrepreneurial ecosystem has a significant impact on TFP, although this impact was more significant in developed countries compared to developing ones. The results also indicate that the intreaction effect of entrepreneurship and entrepreneurial ecosystem on TFP has been significant and this impact was more significant for developed countries. It means that, at the macro-economic level, the impact of entrepreneurship on TFP depends on environment of entrepreneurial ecosystem so that the activity of entrepreneurs in a suitable entrepreneurial ecosystem leads to the improvement of TFP. Therefore, because there is a high quality of entrepreneurial ecosystem in developed countries compared to developing countries, its interaction effect has been greater.

Keywords

entrepreneurship

entrepreneurial ecosystem

total factor productivity (TFP)

dynamic panel approach

developed and developing countries