Entrepreneurship and Economic Growth

We study the impact of entrepreneurship on economic growth. To do so, we analyze whether entrepreneurial activity (based on data from the Global Entrepreneurship Monitor, GEM) affect the economic activity in a given country (as measured by the Gross Domestic Product, GDP). A key methodological contribution of this paper is that the relationship between entrepreneurial activity and GDP growth considers that a relevant part of economic growth is explained by exogenous variables. For this reason, the empirical analysis is based on data on South American Countries, where external factors are more relevant to drive GDP. We found that for the countries analyzed there is a positive and significant relationship between intrapreneurial activity and economic growth.