Entrepreneurial dynamism and entrepreneurial ecosystem in emerging economies: the role of infrastructure

Abstract

Although prior research has extensively examined the relationships between entrepreneurship and economic growth, as well as between infrastructure and development, the influence of infrastructure on entrepreneurial dynamism (ED) in emerging economies remains insufficiently understood. This paper addresses this gap by investigating how both the quantity and quality of infrastructure shape productive entrepreneurship in emerging economies. Grounded in the entrepreneurial ecosystem (EE) framework, we employ state-level data for India from 2000 to 2019 to empirically examine these relationships. Using the dynamic-panel system generalized method of moments (SGMM) estimator to address the dynamic nature of infrastructure and ED variables and their potential endogeneity, we find that significant infrastructure-ED relationships emerge when infrastructure quality is higher.