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Evidence of the Asymmetric Effects of Economic Growth on Entrepreneurship Density: A Case Study of the Iranian Economy
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Amir Mohammad Nobakht Seloushi *1   , Vahid Shahabi nejad2 |
1- M.A. Student in Theoretical Economics, Baft Higher Education Center, Shahid Bahonar University of Kerman, , Kerman, Iran , amirnobakht79@yahoo.com
2- Assistant Professor, Department of Economics, Baft Higher Education Center, Shahid Bahonar University of Kerman, Kerman, Iran |
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Abstract: (8 Views) |
Iran's low and highly volatile economic growth, particularly in recent years, is characterized as low-quality growth, impacting the entrepreneurial ecosystem through various channels. The primary objective of this study is to investigate the asymmetric effects of economic growth on entrepreneurship density in Iran using a Nonlinear Autoregressive Distributed Lag (NARDL) model over the period 1993–2023. The long-run results indicate that economic recessions in Iran, compared to economic booms, have triggered more severe fluctuations and reactions in entrepreneurial behavior; specifically, a 1% decrease in economic growth leads to a 0.57% increase in entrepreneurship density (at the 10% significance level). Furthermore, the findings reveal that human capital and trade openness have had a positive impact on entrepreneurship density, whereas the inflation rate and gross fixed capital formation have exerted a negative effect. To improve entrepreneurial conditions in the Iranian economy, this study recommends designing counter-cyclical support packages, curbing macroeconomic uncertainties, facilitating trade, and making targeted investments in education and skill enhancement. |
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| Keywords: Entrepreneurship Density, Asymmetric Effects, Economic Growth, Necessity Entrepreneurship, Nonlinear Autoregressive Distributed Lag (NARDL) Model |
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Full-Text [PDF 901 kb]
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Article type: Research |
Subject:
Special
Received: 2026/06/24 | Accepted: 2026/10/17
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