|
Asymmetric Effects of International Entrepreneurship in Developed and Developing Countries: An Analysis of Institutional Thresholds and Economic Growth
|
Mohsen Mohammadi Khiareh *    , Khadijeh Mazra'e |
| Department of Economic Sciences, Gonbad Kavous University |
|
|
Abstract: (12 Views) |
| This study examines the nonlinear relationship between international entrepreneurship, institutional quality, and economic growth across 45 selected countries (both developed and developing) during 2003–2023. Using panel econometric techniques, including the System‑GMM estimator to control endogeneity and the Panel Threshold Regression (PTR) model to identify structural breaks, the research provides strong evidence of asymmetric effects. Findings show that in developed economies, international entrepreneurship—especially firms with high export intensity—acts as a driver of innovation and competitiveness, exerting a significant positive impact on growth. In contrast, in developing economies, it has a significant negative effect, supporting the “institutional pull paradox” hypothesis: without supportive institutions, bureaucratic frictions and rent‑seeking outweigh the benefits of global market access. Threshold analysis reveals that institutional quality functions as a switching variable; only after surpassing a certain level of good governance does international entrepreneurship become growth‑enhancing. Domestic investment was identified as a stable growth driver in both groups, while financial development showed a negative effect, reflecting risks of inefficient credit allocation without effective oversight. These results imply that for developing countries, policy priorities must focus on fundamental institutional reforms, since trade liberalization and outward entrepreneurship without crossing the institutional threshold may lead to resource misallocation. |
|
| Keywords: International Entrepreneurship, Economic Growth, Institutional Quality, Threshold Analysis, Institutional Paradox, Panel Data |
|
|
Full-Text [PDF 931 kb]
(7 Downloads)
|
|
Type of Study: Research |
Subject:
Special
|
|
|
|
|
|
|
| Send email to the article author |
|
|
|
| Add your comments about this article |
|
|
|
