Title:
THE LINK BETWEEN ENTREPRENEURSHIP AND ECONOMIC GROWTH: CASE OF ECONOMIC AND MONETARY COMMUNITY OF CENTRAL AFRICA COUNTRIES

Authors:
Moukanza Joseph and ONDONGO Prince Gwladys ,Republic of Congo

Abstract:
The purpose of this article is to analyze the link between entrepreneurship and economic growth in Economic and Monetary Community of Central Africa countries (Congo, Cameroon, Equatorial Guinea and Central African Republic) from 2008 to 2017. This analysis is done in the non-oil sector. Using the generalized method of moments in system on panel data, the econometric results show that entrepreneurship has a positive and non-significant impact on non-oil economic growth in Economic and Monetary Community of Central Africa countries. These results reflect the development of survival entrepreneurship, taking into account the nature of the businesses created. On the other hand, the control variables such as the non-oil private investment rate, the cost of procedures and the time required to start a business significantly stimulate non-oil economic growth at the 1% threshold. Other control variables such as the public investment rate and the employment-population ratio slow down non-oil economic growth significantly, respectively, at the 1% and 10% thresholds. Finally, the econometric results show that final household consumption and public spending on education have an insignificant impact on non-oil economic growth. This suggests a series of policy recommendations regarding the promotion of entrepreneurship.