Performance of Entrepreneurship and its Effects on Economic Development: The Case of Romania and Poland

Author:Valentina Diana Rusu, Oana-Mirela Cojocaru (Diaconescu)
Position:Institute of Interdisciplinary Research, Department of Social Sciences and Humanities, Alexandru Ioan Cuza University of Iasi, Romania/Stefan cel Mare University of Suceava, Suceava
Pages:530-538
European Integration - Realities and Perspectives. Proceedings 2020
530
Performance of Entrepreneurship and its Effects on Economic
Development: The Case of Romania and Poland
Valentina Diana Rusu1, Oana-Mirela Cojocaru (Diaconescu)2
Abstract: The entrepreneurship is significant for stimulating the economic development of countries. The
policy makers from countries around the world joined forces, in recent years, to find the appropriate measures
that can stimulate and support entrepreneurship. Moreover, given that the economic turmoil caused in recent
years by various crises (financial, now health) have significantly affected the business environment and the
economies of all countries, the attention of decision makers but also of researchers for identifying measures to
help entrepreneurship has increased. In this context, our paper analysis the effects the relation between
entrepreneurial performance and economic development for two countries: Romania and Poland, focusing on
a comparative assessment. We t ry to identify if increased entrepreneurial performance could improve the
economies of the two countries considered. For the empirical analysis we use two dependent variables as proxy
for the level of economic development, and a set of eight indicators that measure the entrepreneurial
performance. The analysis comprises in graphical, comparative and also panel-d ata estimation techniques and
targets the period between 2008 and 2016. Our results show that entrepreneurial performance can sustain and
stimulate competitiveness of the two considered countries but also their economic growth. Our results could
be of interest to decision makers from Romania and Poland that intend to increase economic development
through the entrepreneurial sector.
Keywords: performance; economic growth; panel data
JEL Classification: C33; L26
1. Introduction
The development of economies and ranking them in the most advantageous positions compared to other
countries at the international level in terms of competitiveness and the level of economic growth is a
major concern at present for decision makers. Moreover, researchers are concerned with identifying
ways in which economic growth can be achieved and have turned their attention to entrepreneurship as
a factor in stimulating and sustaining the economy. All this because, entrepreneurship is seen as a
significant influencing factor for economic development and growth, by the fact that it creates new jobs
and stimulates competition.
Thus, starting from this idea, in this paper we set out to analyse the relations between entrepreneurial
performance and economic development in the case of two countries, from Central and Eastern Europe,
developing countries, Romania and Poland. For measuring the entrepreneurial performance, we resort
1 Institute of Interdisciplinary Research, Department of Social Sciences and Humanities, Alexandru Ioan Cuza University of
Iasi, Romania, Address: Lascăr Catargi Street, no. 54, Iasi, Romania, E-mail: valentinadiana.ig@gmail.com.
2 Stefan cel Mare University of Suceava, Suceava, Address: Strada Universității 13, Suceava 720229, Romania, Corresponding
author: diaconescu_oana@yahoo.com.

To continue reading

Request your trial