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The current research is aimed at investigating the relationship between entrepreneurial activity and economic growth, more specifically, in the context of Middle East countries. Entrepreneurial activities are professed to improve the economic development of the country through employment generation, increase in the rate of gross domestic product (GDP), increased productivity levels, poverty alleviation, and so on. Based on the possibility of these positive aspects, economic growth is considered to be driven through increased entrepreneurial activities, in the context of developing countries. To investigate this relationship between research variables, quantitative data was collected using the World Bank database of 8 Middle Eastern countries for the period 2009-2016. Based on the correlation and regression results, the study finds a significant positive impact of entrepreneurial activity (measured as new businesses registered) on economic growth (GDP growth) in the Middle East. Therefore, it is important for states in the Middle East to focus on promoting entrepreneurial activity, which influences economic growth.

Investigating the relationship between entrepreneurial activity and economic growth: a case of Middle East