CARe Researcher at InCEBT 2023

Dr Slesman Ly, CARe’s researcher attended the 11th International Conference on Entrepreneurship, Business and Technology (InCEBT 2023) Conference in Kuala Lumpur, 14th – 15th October 2023. He presented a paper entitled: Does Entrepreneurship Promote Economic Growth in the OIC Countries?

Congratulations to Dr. Slesman on receiving the Best Presenter Award at InCEBT 2023 for his paper presentation. The inclusion of Brunei Darussalam in this paper makes a significant contribution to the Youth and Economy cluster within CARe.

The abstract of this paper is available below.

A recent strand of development economics literature has gone beyond productive inputs to examine the role played by entrepreneurship—involving resource coordination, new business creation, and innovation—in the economic development process. The puzzle with this literature is that there is a contrasting finding of the positive economic growth effect of entrepreneurship in developed countries versus the adverse or insignificant effects for developing countries. This paper empirically quantifies the economic growth dividends of the ‘formal’ entrepreneurial activities in a panel of 37 Muslim countries belonging to the Organization of Islamic Countries (OIC) for the 2006-2019 period using a generalized method of moments system estimator that deals with weak and proliferation of instruments to control for endogeneity problems of entrepreneurship (and other growth drivers). 

We found two important results. First, entrepreneurship has a U-shaped effect on economic growth in these OIC countries. Second, when OIC domestic absorptive capacities in the form of institutions, resource rent, financial development, and degree of trade openness are considered we found that natural resource rent and financial development have a positive contingent/moderating effect on entrepreneurship-growth nexus while the moderating effects of institutions and openness to trade are statistically insignificant. Thus, a critical number of entrepreneurial activities (surpassing the threshold level) can increase growth, and higher resource rent and better financial development promote the marginal effects of entrepreneurship on economic growth in OIC countries. It appears that institutions and openness to trade do not play a significant moderating role in the entrepreneurship-growth nexus for OIC countries.