An Empirical Study of the Role of Entrepreneurship in Zambia’s Economic Growth (1990-2023)

Austin  Mwange; Windu  Matoka

doi:10.59413/eafj/v3.i2.10

Authors

Austin Mwange The University of Zambia, Graduate School of Business, Lusaka, Zambia Author
Windu Matoka ZCAS University, School of Business, Lusaka, Zambia Author

DOI:

https://doi.org/10.59413/eafj/v3.i2.10

Keywords:

Entrepreneurship, Economic Growth, TEA rate (Total Early-stage Entrepreneurial Activity), ARDL regression model, Granger causality, Sustainable economic development, Macro-economic environment, Unemployment rate, Inflation, Zambia

Abstract

Entrepreneurship has been recently considered a vital ingredient for stimulating economic growth in most emerging economies. The empirical study investigated the role of entrepreneurship in Zambia’s economic growth. The study utilized secondary annual data for the period from 1990 to 2023. Data was analysed using ARDL regression, granger causality and co-integration test. The results revealed a significant positive long-run relationship between economic growth and entrepreneurship. The study further revealed a uni-directional causality running from entrepreneurship to economic growth. The study concluded that entrepreneurship represents a catalyst for boosting economic growth of Zambia. The research therefore recommended for policymakers including the government of the Republic of Zambia to emphasize on policies which promote innovative entrepreneurial activities in Zambia in order to achieve sustainable economic growth. The study made significant contributions to theory and policy.

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