Open AccessDO ENTREPRENEURIAL DYNAMICS AND EMPLOYMENT INFLUENCE ECONOMIC GROWTH? EVIDENCE FOR ROMANIA
Author(s) -
Ramona Simuț,
Alina Bădulescu,
Dragos Dianu
Publication year - 2021
Publication title -
oradea journal of business and economics
Language(s) - English
Resource type - Journals
eISSN - 2501-3599
pISSN - 2501-1596
DOI - 10.47535/1991ojbe133
Subject(s) - entrepreneurship , pace , context (archaeology) , population , economics , human capital , empirical evidence , gross domestic product , competition (biology) , economic geography , economic system , business , economic growth , paleontology , philosophy , demography , geodesy , finance , epistemology , sociology , biology , geography , ecology
The literature on the relationship between entrepreneurship, firm formation and economic development often describes entrepreneurship as a complex phenomenon, led by individuals, embedded in a broad economic and societal context, which, in regional terms, influences the quality and results of the entrepreneurial process. From a micro-economic perspective, the region is shaped by the myriad of laborious and innovative actions of entrepreneurs, looking for opportunities, taking risks, starting businesses and generating economic and social associations. Competition, trust, networks, mentalities, the education system, public policies, all are ingredients that can provide opportunities for many actors at the local level (institutions, businesses, population, etc.) and thus, for the region as a whole to thrive. Often these elements can offer the opportunities of economic convergence between regions and countries. On the other hand, we found that the potential of entrepreneurship to generate benefits and an impetus for the economic growth of regions were not fully researched and understood, despite suggestive empirical evidence and a rich literature in regional studies. In this article we analysed, at the level of the 8 development regions of Romania, the relation between the firm’s formation and the evolution of the Gross Domestic Product, respectively the relation between employment/active population and the evolution of the Gross Domestic Product. We did not find clear evidence that the pace of setting up new businesses has a certain effect on economic growth or employment, but we found that in some regions, better equipped in terms of infrastructure, qualification and diversity of human capital, entrepreneurial dynamics could moderately influence the positive evolution of these macroeconomic indicators.