Assessing the effects of the financial sector on entrepreneurship level in Iran and selected Islamic countries: A panel co-integration approach with cross-sectional dependence
Subject Areas : Journal of Investment Knowledge
farzad
rahimzadeh
1
(Master student of financial management, Allameh Tabatabai University, Tehran, Iran.)
Alimohammad
Abed
2
(Assistant Professor, Department of Economics and Accounting, Faculty of Humanities, University of Guilan, Rasht, Iran .)
Keywords: Islamic countries, Panel Integration Approach, Entrepreneurship, Financial sector, Iran,
Abstract :
Entrepreneurship plays a key role in the economic growth of countries and from the point of view of economists is introduced as a key factor in the production process and the driving force of the economy. Therefore, it is necessary to identify the factors affecting it. According to studies conducted in the field of entrepreneurship, financing entrepreneurial activities has been one of the factors affecting the level of entrepreneurship. Accordingly, in this study, using data related to Iran and selected Islamic countries in the period 2020-2000, the impact of financial sector indicators on the level of entrepreneurship has been studied. Based on the results of model estimation by data panel method, financial sector indicators have a positive and significant effect on the level of entrepreneurship and this effect is statistically significant at a significance level of 5%. Because the greater the amount of credit granted by the banking sector to the private sector and the greater the financial depth of the stock market, the ability of individuals and entrepreneurial firms to finance their activities through the banking network and the stock market increases and they are less financially constrained. Also, at a significant level of 5%, the impact of foreign direct investment, guidance education, population growth on the level of entrepreneurship was positive, but this impact is not statistically significant. In addition, the impact of secondary education, economic growth and per capita income on the level of entrepreneurship is positive and these effects are statistically significant at 5% significant level
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