The Moderating Impact of Stages of Development on Entrepreneurship-Economic Growth Relationship

This paper investigates how a country\u27s stage of development influences the relationship between entrepreneurial activity and economic growth. Recognizing that entrepreneurial effects differ across developmental stages, we distinguish between innovation-driven and efficiency-driven economies and OECD/non-OECD membership. Although these categories share similarities, subtle variations exist, imposing their separation. Dummy variables are introduced to control for these differences and to examine how the stage of development and OECD affiliation moderate the relationship between entrepreneurship and economic growth. To add a layer of complexity, we include GDP per capita interactions with our main variables of interest. Employment growth and new product innovations serve as key indicators. This study enhances our understanding of the intricate relationship between entrepreneurial activities, economic growth, and a country\u27s development stage, offering insights valuable for policymakers adapting strategies to the needs of diverse economic environments