DETERMINANTS OF ENTREPRENEURIAL INTENTION: A COMPARATIVE ANALYSIS

Abstract

The current research aims to investigate the relationship among economic growth, Environmental Efficiency (EE) and Entrepreneurial Intention (EI). To achieve this, the author has adopted a circular interactive system among environmental efficiency, economic growth and entrepreneurial intention for 49 developing and developed nations through panel causality analysis based on both cross-sectional dependence and heterogeneity by country. The data used in this study ranged between 2001 and 2019 and was extracted from databases on the World Bank Indicators (WDIs) in addition to the Global Entrepreneurs Monitor database (GEM dataset). Based on the quantitative approach, the obtained data were analyzed using STATA. Results emphasize that a bidirectional causal association exists between economic growth and entrepreneurial intention. Findings related to environmental efficiency seem to be more restrictive. It can be concluded that an indirect and positive effect of environment efficiency on EI is significant only in high-income level countries. This paper provides new insights into the paradoxical effects and interrelations between economic growth and environmental efficiency on EI. Research confirms that entrepreneurship is a reflexive process defined through a specific mindset, and policymakers have to invest in environmental efficiency and strengthen policies to protect the environment and favor an entrepreneurial “feeling good” as a stimulator for EI. This study could also assist and guide researchers for future research to operationalize the results of the following study.