Economic complexity and entrepreneurship density: A non-linear effect study

This study examines the link between economic complexity and entrepreneurship density. Testing 53 economies over period 2006-2016, we find a significant Granger causality from to density, but reverse is not supported. Also, suggest that density an inverted-U shaped function of complexity. That is, increase in initially facilitates as more business opportunities are created. However, beyond specific threshold, induces higher risks uncertainties, discouraging entrepreneurial activities. The results remain robust by different estimators sub-samples High-Income Economies Low-and-Middle-Income Economies.