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Unlocking Algeria's Economic Potential: The Entrepreneurship's Effect on Growth
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Author(s): Amira Driss (University of Ain Temouchent, Algeria)and Naima Bentouir (University of Ain Temouchent, Algeria)
Copyright: 2023
Pages: 17
Source title:
The Importance of Entrepreneurship in Fostering Economic Progress
Source Author(s)/Editor(s): Mohammed El Amine Abdelli (University of Brest, France), Naima Bentouir (Ain Temouchent University, Algeria)and Esra Sipahi Döngül (Aksaray University, Turkey)
DOI: 10.4018/978-1-6684-7127-2.ch004
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Abstract
The distinction between entrepreneurship and rent-seeking is acknowledged, highlighting the significant role that entrepreneurship education plays in fostering employment opportunities, productivity, economic growth, innovation, and competitiveness. This approach ultimately enhances a country's standing in the global market. This study aims to evaluate the effect of entrepreneurship on Algeria's economic development. Using annual data from 2006 to 2020, the Autoregressive Distributed Lag (ARDL) co-integration methodology is used to accomplish this. The analysis's main conclusions show that the variables of interest have a consistent, long-term relationship. Furthermore, the findings show that tertiary education (as a percentage of gross enrollment), new business density, and school enrolment all positively influence GDP growth over the short and long terms. These results offer strong proof of the beneficial impact of entrepreneurship on economic growth.
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