1. Financial Development Impact on Firm Dynamic Creation: Panel Data Evidence on MENA Countries
- Author
-
Yasmina Ghanem and Mohamed Achouche
- Subjects
Entrepreneurship ,050208 finance ,business.industry ,05 social sciences ,Instrumental variable ,International trade ,Monetary economics ,Financial development ,0502 economics and business ,Economics ,050207 economics ,business ,General Economics, Econometrics and Finance ,Institutional quality ,Panel data - Abstract
Using a panel of 14 MENA countries, this paper investigates and examines whether financial development trains a substantial effect on entrepreneurship development by facilitating the rise of new firms. Generalized Two-Stage Least Squares estimate results with instrumental variables highlight the relevance of developed financial systems for the creation of new firms. In overall, financial development and its component explained by the institutional quality exert a positive and significant effect on new entry density in oil MENA countries compared to non-oil ones.
- Published
- 2016