The entrepreneurship-growth nexus in the GCC: does political stability matter?

Abstract

This research paper aims to explore the complex relationship between entrepreneurship (REE), economic growth (GDP), and the moderating role of political stability (PS) in the context of the Gulf Cooperation Council (GCC) countries. Utilizing a balanced panel dataset from 2006 to 2020, we employed Panel Least Squares and Panel EGLS (Cross-section random effects) to evaluate the interactions among these variables. The findings reveal that more than entrepreneurship alone is needed to significantly contribute to economic growth in the GCC countries. However, when political stability serves as a moderating variable, the impact of entrepreneurship on economic growth becomes markedly positive. The study provides critical insights for policymakers, indicating the necessity of a multi-faceted approach incorporating entrepreneurship and political stability in economic planning. The research fills a significant gap in the existing literature by shedding light on the intertwined nature of entrepreneurship and political stability as crucial drivers of economic growth in the GCC. This paper further offers concrete policy recommendations rooted in empirical evidence, aiming to guide future economic strategies in the region.

Keywords

• Entrepreneurship
• economic growth
• political stability
• Gulf cooperation council (GCC)
• panel least squares
• Chris Jones, Aston University, United Kingdom of Great Britain and Northern Ireland