Entrepreneurship, Unemployment and Economic Growth: Evidence from Egypt.

This paper focuses on studying whether entrepreneurship affects or is affected by unemployment, economic growth, and inflation in Egypt during the period 1993-2013. In the empirical analysis, an econometric time series model is presented by applying the Vector Autocorrelation (VAR) modelling approach in order to estimate the desired relationship and capture the short run dynamics. Self-employment rate is used as a proxy for entrepreneurship, and real GDP growth rate is used as a proxy for economic growth. Empirical results suggest that entrepreneurship has a significant positive effect on both economic growth and inflation, while it has a significant negative effect on unemployment; which supports the Schumpeter effect, but not vice versa. [ABSTRACT FROM AUTHOR]