[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/70237.html
   My bibliography  Save this paper

The Impact of Entrepreneurship on Knowledge Economy in Africa

Author

Listed:
  • Asongu, Simplice
  • Tchamyou, Vanessa
Abstract
Purpose - The paper assesses how entrepreneurship affects knowledge economy (KE) in Africa. Design/methodology/approach – Entrepreneurship is measured by indicators of starting, doing and ending business. The four dimensions of the World Bank’s index of KE are employed. Instrumental variable panel fixed effects are applied on a sampled of 53 African countries for the period 1996-2010. Findings –The following are some findings. First, creating an enabling environment for starting business can substantially boost most dimensions of KE. Second, doing business through mechanisms of trade globalisation has positive effects from sectors that are not ICT and High-tech oriented. Third, the time required to end business has negative effects on KE. Practical implications – Our findings confirm the narrative that the technology in African countries at the moment may be more imitative and adaptive for reverse-engineering in ICTs and high-tech products. Given the massive consumption of ICT and high-tech commodities in Africa, the continent has to start thinking of how to participate in the global value chain of producing what it consumes. Originality/value – This paper has a twofold motivation. First, given the ambitions of African countries of moving towards knowledge based economies, the line of inquiry is timely. Second, investigating the nexus may have substantial poverty mitigation and sustainable development implications. These entail inter alia: the development of technology with value-added services; enhancement of existing agricultural practices; promotion of conditions that are essential for competitiveness and adjustment of globalization challenges.

Suggested Citation

  • Asongu, Simplice & Tchamyou, Vanessa, 2015. "The Impact of Entrepreneurship on Knowledge Economy in Africa," MPRA Paper 70237, University Library of Munich, Germany, revised Aug 2015.
    • Handle: RePEc:pra:mprapa:70237
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/70237/1/MPRA_paper_70237.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. S. Jules-Armand Tapsoba, 2009. "Trade Intensity and Business Cycle Synchronicity in Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 18(2), pages 287-318, March.
    2. Carlisle, Sheena & Kunc, Martin & Jones, Eleri & Tiffin, Scott, 2013. "Supporting innovation for tourism development through multi-stakeholder approaches: Experiences from Africa," Tourism Management, Elsevier, vol. 35(C), pages 59-69.
    3. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
    4. Antonio R Andres & Simplice A Asongu, 2013. "Global dynamic timelines for IPRs harmonization against software piracy," Economics Bulletin, AccessEcon, vol. 33(1), pages 874-880.
    5. Vanessa Simen Tchamyou, 2017. "The Role of Knowledge Economy in African Business," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(4), pages 1189-1228, December.
    6. Simplice A. Asongu, 2014. "Software Piracy and Scientific Publications: Knowledge Economy Evidence from Africa," African Development Review, African Development Bank, vol. 26(4), pages 572-583, December.
    7. Simplice A Asongu, 2013. "Modeling the future of knowledge economy: evidence from SSA and MENA countries," Economics Bulletin, AccessEcon, vol. 33(1), pages 612-624.
    8. Simplice Asongu, 2013. "Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa," Journal of Business Ethics, Springer, vol. 118(1), pages 45-60, November.
    9. David Ahlstrom & Garry D. Bruton, 2006. "Venture Capital in Emerging Economies: Networks and Institutional Change," Entrepreneurship Theory and Practice, , vol. 30(2), pages 299-320, March.
    10. Antonio Rodríguez Andrés & Simplice Asongu, 2016. "Global trajectories, dynamics, and tendencies of business software piracy," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(5), pages 780-800, October.
    11. John C. Anyanwu, 2012. "Why Does Foreign Direct Investment Go Where It Goes?: New Evidence From African Countries," Annals of Economics and Finance, Society for AEF, vol. 13(2), pages 425-462, November.
    12. Junyon Im & Sunny Sun, 2015. "Profits and outreach to the poor: The institutional logics of microfinance institutions," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 95-117, March.
    13. William Baah-Boateng, 2013. "Determinants of Unemployment in Ghana," African Development Review, African Development Bank, vol. 25(4), pages 385-399.
    14. Garry D. Bruton & David Ahlstrom & Krzysztof Obloj, 2008. "Entrepreneurship in Emerging Economies: Where Are We Today and Where Should the Research Go in the Future," Entrepreneurship Theory and Practice, , vol. 32(1), pages 1-14, January.
    15. Simplice A Asongu & Lieven De Moor, 2017. "Financial Globalisation Dynamic Thresholds for Financial Development: Evidence from Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(1), pages 192-212, January.
    16. Simplice A. Asongu, 2018. "Conditional Determinants of Mobile Phones Penetration and Mobile Banking in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(1), pages 81-135, March.
    17. German, Laura & Stroud, Ann, 2007. "A Framework for the Integration of Diverse Learning Approaches: Operationalizing Agricultural Research and Development (R&D) Linkages in Eastern Africa," World Development, Elsevier, vol. 35(5), pages 792-814, May.
    18. Garry D. Bruton & David Ahlstrom & Han–Lin Li, 2010. "Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future?," Entrepreneurship Theory and Practice, , vol. 34(3), pages 421-440, May.
    19. Asongu Simplice, 2011. "Government Quality Determinants of Stock Market Performance in African Countries," Working Papers of the African Governance and Development Institute. 11/019, African Governance and Development Institute..
    20. Simplice A. Asongu, 2017. "The Comparative Economics of Knowledge Economy in Africa: Policy Benchmarks, Syndromes, and Implications," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 596-637, June.
    21. Simplice Asongu, 2013. "How Would Population Growth Affect Investment in the Future? Asymmetric Panel Causality Evidence for Africa," African Development Review, African Development Bank, vol. 25(1), pages 14-29.
    22. Brixiová, Zuzana & Ncube, Mthuli & Bicaba, Zorobabel, 2015. "Skills and Youth Entrepreneurship in Africa: Analysis with Evidence from Swaziland," World Development, Elsevier, vol. 67(C), pages 11-26.
    23. Gerard George & Rekha Rao-Nicholson & Christopher Corbishley & Rahul Bansal, 2015. "Institutional entrepreneurship, governance, and poverty: Insights from emergency medical response servicesin India," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 39-65, March.
    24. Asiedu, Elizabeth, 2002. "On the Determinants of Foreign Direct Investment to Developing Countries: Is Africa Different?," World Development, Elsevier, vol. 30(1), pages 107-119, January.
    25. Steven Si & Xuebao Yu & Aiqi Wu & Shouming Chen & Song Chen & Yiyi Su, 2015. "Entrepreneurship and poverty reduction: A case study of Yiwu, China," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 119-143, March.
    26. Antonio Andrés & Simplice Asongu, 2013. "Fighting Software Piracy: Which Governance Tools Matter in Africa?," Journal of Business Ethics, Springer, vol. 118(3), pages 667-682, December.
    27. Paul BENJAMIN & Haroon BHORAT & Halton CHEADLE, 2010. "The cost of “doing business” and labour regulation: The case of South Africa," International Labour Review, International Labour Organization, vol. 149(1), pages 73-91, March.
    28. Ivashina, Victoria, 2009. "Asymmetric information effects on loan spreads," Journal of Financial Economics, Elsevier, vol. 92(2), pages 300-319, May.
    29. Erkko Autio & Kun Fu, 2015. "Economic and political institutions and entry into formal and informal entrepreneurship," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 67-94, March.
    30. Bruton, Garry D. & Ahlstrom, David, 2003. "An institutional view of China's venture capital industry: Explaining the differences between China and the West," Journal of Business Venturing, Elsevier, vol. 18(2), pages 233-259, March.
    31. Amendolagine, Vito & Boly, Amadou & Coniglio, Nicola Daniele & Prota, Francesco & Seric, Adnan, 2013. "FDI and Local Linkages in Developing Countries: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 50(C), pages 41-56.
    32. Letiche, John M., 2006. "Positive economic incentives: New behavioral economics and successful economic transitions," Journal of Asian Economics, Elsevier, vol. 17(5), pages 775-796, November.
    33. Zerbe, Noah, 2005. "Biodiversity, ownership, and indigenous knowledge: Exploring legal frameworks for community, farmers, and intellectual property rights in Africa," Ecological Economics, Elsevier, vol. 53(4), pages 493-506, June.
    34. Sampawende Jules Tapsoba, 2010. "Trade Intensity and Business Cycle Synchronicity in Africa," Post-Print halshs-00523582, HAL.
    35. Garry Bruton & David Ahlstrom & Steven Si, 2015. "Entrepreneurship, poverty, and Asia: Moving beyond subsistence entrepreneurship," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 1-22, March.
    36. Simplice Asongu & Lieven De Moor, 2015. "Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects," Working Papers of the African Governance and Development Institute. 15/040, African Governance and Development Institute..
    37. Eifert, Benn & Gelb, Alan & Ramachandran, Vijaya, 2008. "The Cost of Doing Business in Africa: Evidence from Enterprise Survey Data," World Development, Elsevier, vol. 36(9), pages 1531-1546, September.
    38. Voxi Heinrich Amavilah, 2009. "Knowledge of African countries: production and value of doctoral dissertations," Applied Economics, Taylor & Francis Journals, vol. 41(8), pages 977-989.
    39. Asiedu, Elizabeth & Lien, Donald, 2011. "Democracy, foreign direct investment and natural resources," Journal of International Economics, Elsevier, vol. 84(1), pages 99-111, May.
    40. Abdul Kamara & Lobna Bousrih & Magidu Nyende, 2007. "Working Paper 88 - Growing a Knowledge - Based Economy: Evidence from Public Expenditure on Education in Africa," Working Paper Series 223, African Development Bank.
    41. William Baah-Boateng, 2015. "Unemployment in Africa," International Journal of Manpower, Emerald Group Publishing Limited, vol. 36(5), pages 650-667, August.
    42. Elizabeth Asiedu, 2006. "Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability," The World Economy, Wiley Blackwell, vol. 29(1), pages 63-77, January.
    43. Simplice Asongu & John Ssozi, 2016. "Sino-African Relations: Some Solutions and Strategies to the Policy Syndromes," Journal of African Business, Taylor & Francis Journals, vol. 17(1), pages 33-51, January.
    44. Kinda, Tidiane, 2010. "Investment Climate and FDI in Developing Countries: Firm-Level Evidence," World Development, Elsevier, vol. 38(4), pages 498-513, April.
    45. Lin, Brian Chi-ang, 2006. "A sustainable perspective on the knowledge economy: A critique of Austrian and mainstream views," Ecological Economics, Elsevier, vol. 60(1), pages 324-332, November.
    46. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    47. Sampawende Tapsoba, 2010. "Trade Intensity and Business Cycle Synchronicity in Africa," African Development Review, African Development Bank, vol. 22(1), pages 149-172.
    48. Sumberg, James, 2005. "Systems of innovation theory and the changing architecture of agricultural research in Africa," Food Policy, Elsevier, vol. 30(1), pages 21-41, February.
    49. Mr. Magnus Saxegaard, 2006. "Excess Liquidity and Effectiveness of Monetary Policy: Evidence from Sub-Saharan Africa," IMF Working Papers 2006/115, International Monetary Fund.
    50. Bartels, Frank L. & Napolitano, Francesco & Tissi, Nicola E., 2014. "FDI in Sub-Saharan Africa: A longitudinal perspective on location-specific factors (2003–2010)," International Business Review, Elsevier, vol. 23(3), pages 516-529.
    51. Sharon Alvarez & Jay Barney & Arielle Newman, 2015. "The poverty problem and the industrialization solution," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 23-37, March.
    52. Roland Bardy & Stephen Drew & Tumenta Kennedy, 2012. "Foreign Investment and Ethics: How to Contribute to Social Responsibility by Doing Business in Less-Developed Countries," Journal of Business Ethics, Springer, vol. 106(3), pages 267-282, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Richard Adu-Gyamfi & John Kuada & Simplice A. Asongu, 2023. "An Integrative Framework for Formal and Informal Entrepreneurship Research in Africa," Journal of African Business, Taylor & Francis Journals, vol. 24(2), pages 167-187, April.
    2. Simplice A. Asongu, 2017. "Mobile Phone Innovation and Technology-driven Exports in Sub-Saharan Africa," Research Africa Network Working Papers 17/042, Research Africa Network (RAN).
    3. Adu-Gyamfi, Richard & Kuada, John & Asongu, Simplice, 2018. "An Integrative Framework for Entrepreneurship Research in Africa," MPRA Paper 89133, University Library of Munich, Germany.
    4. Asongu, Simplice & Biekpe, Nicholas, 2017. "Mobile Phone Innovation and Entrepreneurship in Sub-Saharan Africa," MPRA Paper 81703, University Library of Munich, Germany.
    5. Charles Shaaba Saba & Nicholas Ngepah, 2022. "Nexus between telecommunication infrastructures, defence and economic growth: a global evidence," Netnomics, Springer, vol. 22(2), pages 139-177, October.
    6. Simplice A. Asongu & Ndemaze Asongu, 2019. "The Role of Mobile Phones in Governance-Driven Technology Exports in Sub-Saharan Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 849-867, June.
    7. Asongu, Simplice A. & Nwachukwu, Jacinta C. & Orim, Stella-Maris I., 2018. "Mobile phones, institutional quality and entrepreneurship in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 183-203.
    8. M. Ajide, Folorunsho & A. A. Soyemi, Kenny, 2022. "Oil rent, entrepreneurial start-ups, and institutional quality: Insights from African oil-rich countries," Working Papers 20, Department of Economics, University of Ilorin.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vanessa Simen Tchamyou, 2017. "The Role of Knowledge Economy in African Business," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(4), pages 1189-1228, December.
    2. Simplice A. Asongu, 2017. "Knowledge Economy Gaps, Policy Syndromes, and Catch-Up Strategies: Fresh South Korean Lessons to Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 211-253, March.
    3. Simplice A. Asongu, 2017. "The Comparative Economics of Knowledge Economy in Africa: Policy Benchmarks, Syndromes, and Implications," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 596-637, June.
    4. Simplice A. Asongu & Vanessa S. Tchamyou, 2019. "Foreign Aid, Education and Lifelong Learning in Africa," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(1), pages 126-146, March.
    5. Asongu, Simplice A. & Andrés, Antonio R., 2020. "Trajectories of knowledge economy in SSA and MENA countries," Technology in Society, Elsevier, vol. 63(C).
    6. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "The role of lifelong learning on political stability and non violence: evidence from Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 43(1), pages 141-164, January.
    7. Simplice Asongu & Jacinta C Nwachukwu, 2015. "The incremental effect of education on corruption: evidence of synergy from lifelong learning," Economics Bulletin, AccessEcon, vol. 35(4), pages 2288-2308.
    8. Simplice A. Asongu & Vanessa S. Tchamyou & Paul N. Acha-Anyi, 2020. "Who Is Who in Knowledge Economy in Africa?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 425-457, June.
    9. Asongu, Simplice & Andrés, Antonio R., 2015. "Trajectories in Knowledge Economy: Empirics from SSA and MENA countries," MPRA Paper 71786, University Library of Munich, Germany.
    10. Simplice Asongu & Enowbi Batuo & Vanessa Tchamyou, 2015. "Bundling Governance: Finance versus Institutions in Private Investment Promotion," Working Papers of the African Governance and Development Institute. 15/051, African Governance and Development Institute..
    11. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Building Knowledge Economies in Africa: A Survey of Policies and Strategies," Research Africa Network Working Papers 17/021, Research Africa Network (RAN).
    12. Simplice A. Asongu, 2019. "FDI in Selected Developing Countries: Evidence from Bundling and Unbundling Governance," Working Papers 19/057, European Xtramile Centre of African Studies (EXCAS).
    13. Simplice A. Asongu, 2023. "Mobile Phone Innovation and Doing Business in Sub-Saharan Africa," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 9(2), pages 238-269, July.
    14. Simplice Asongu & Nicholas Biekpe & Vanessa Tchamyou, 2019. "Remittances, ICT and doing business in Sub-Saharan Africa," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 35-54, January.
    15. Simplice A. Asongu, 2017. "Boosting Scientific Publications in Africa: Which IPRs Protection Channels Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(1), pages 197-210, March.
    16. Voxi Amvilah & Simplice Anutechia Asongu & Antonio Andrés, 2014. "Globalization, Peace & Stability, Governance, and Knowledge Economy," AAYE Policy Research Working Paper Series 14_024, Association of African Young Economists, revised Dec 2014.
    17. Simplice A. Asongu & Joseph Nnanna & Vanessa S. Tchamyou, 2020. "Finance, Institutions and Private Investment in Africa," Working Papers of the African Governance and Development Institute. 20/080, African Governance and Development Institute..
    18. Asongu, Simplice A. & Nwachukwu, Jacinta C. & Orim, Stella-Maris I., 2018. "Mobile phones, institutional quality and entrepreneurship in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 183-203.
    19. Asongu, Simplice & Biekpe, Nicholas, 2017. "Mobile Phone Innovation and Entrepreneurship in Sub-Saharan Africa," MPRA Paper 81703, University Library of Munich, Germany.
    20. Asongu, Simplice & Nwachukwu, Jacinta, 2015. "Drivers of FDI in Fast Growing Developing Countries: Evidence from Bundling and Unbundling Governance," MPRA Paper 67294, University Library of Munich, Germany.

    More about this item

    Keywords

    Entrepreneurship; Knowledge Economy; Development; Africa;
    All these keywords.

    JEL classification:

    • L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:70237. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.