EIM Business & Policy Research
The importance of entrepreneurship for modern economies has been studied widely. When considering the relation between entrepreneurship and macro-economic variables, there are three major concepts in macro-economics that one can focus on: the level of economic development, the growth of economic development and the business cycle. The authors investigate the interplay between the business cycle, entrepreneurial activity and unemployment in relation to the openness of the economy. Also, they explore to what extent the observation frequency (quarterly versus annual data) influences estimation results. They take the analysis of Koellinger and Thurik (2012) - a pooled VAR model of the three macroeconomic variables - as a starting point.