Economic globalization, entrepreneurship, and development

If economic integration and mutual reliance between local or global entities result from a borderless and relatively free flow of production factors as well as goods and services, small business practice, innovation and risk ventures will objectively yield profits. In the context of BRICS11BRICS is...

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Bibliographic Details
Published in:Technological forecasting & social change 2018-02, Vol.127, p.271-280
Main Authors: Coulibaly, Salifou K., Erbao, Cao, Metuge Mekongcho, T.
Format: Article
Language:English
Subjects:
Arellano-bond estimation
BRICS
Developing countries
Development
Economic development
Economic factors
Economic globalization
Economic integration
Economics
Entrepreneurship
Estimation
Free flow
Global local relationship
Globalization
Innovations
International trade
LDCs
Opportunity entrepreneurship
Panel data
Policy implementation
Production
Profits
Rapid growth
Regional development
Small business
Trade agreements
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Summary:If economic integration and mutual reliance between local or global entities result from a borderless and relatively free flow of production factors as well as goods and services, small business practice, innovation and risk ventures will objectively yield profits. In the context of BRICS11BRICS is an acronym for the world's major emerging economies Brazil, Russia, India, China, and South Africa. It was originally BRIC as coined by Goldman Sachs's Jim O'Neill excluding South Africa. These nations are projected, by 2050 to be wealthier than the current major economic powers. (Brazil, Russia, India, China, and South Africa) nations, have both phenomena enhanced rapid economic development? Using an unbalanced panel dataset for BRICS member states, we investigate these propositions by estimating the effects of: a comprehensive globalization index variable (KOF) as in Dreher (2006) and Samimi et al. (2014) and an opportunity total entrepreneurship activity (OTEA) variable à la Urbano and Aparicio (2016) through an Arellano-Bond model estimator first, then a dynamic estimation model next. Results show, after utilizing both estimation techniques, the variables were all positive and statistically significant, hence confirming the hypothesis. We posit the implementation of innovation-driven policies that will promote the movement of production factors, enhance South-South financial and regional trade agreements and sustain economic development in developing nations in general and BRICS economies in particular. •BRICS nations grew at a faster rate than developed nations between 2002 and 2013.•Economic globalization and entrepreneurship contribute to growth & development.•Vibrant SMEs impact shift from efficiency-driven to innovation-driven development.•Factor mobility promotes investment & technology growth among BRICS nations.•Financing South-South trade & multilateral alliances enhances global competition.
ISSN:0040-1625
1873-5509
DOI:10.1016/j.techfore.2017.09.028