The mediation role of public governance in the relationship between entrepreneurship and economic growth

Abstract

Purpose

The purpose of this paper is to investigate the mediation role of public governance in the relationship between entrepreneurship and economic growth in the United Arab Emirates (UAE).

Design/methodology/approach

To achieve this aim, the study uses a 20-year time series analysis (1996–2015) and tests the effect of entrepreneurship on economic growth, through public governance, via a mediator model.

Findings

The study has determined that public governance buoys the positive effect that entrepreneurship activities exert on economic growth in the UAE. Based on this determination, the study posits a set of recommendations that focus on supporting entrepreneurship activities that play a significant role in economic growth.

Originality/value

The study adds to the literature on the impact of entrepreneurship on economies dependent on oil revenues vis-à-vis a public policy perspective. The study provides insights into the type of entrepreneurship that most efficaciously suits the Emirati social and cultural milieu in terms of fostering national economic growth. In addition, the study limns a vision of the role of public governance in creating an enabling environment that stimulates entrepreneurial activity and, in turn, increases economic growth in the Emirates.

Citation

Hamdan, A.M., Khamis, R., Al Hawaj, A.A. and Barone, E. (2020), "The mediation role of public governance in the relationship between entrepreneurship and economic growth", International Journal of Managerial Finance, Vol. 16 No. 3, pp. 316-333. https://doi.org/10.1108/IJMF-04-2018-0111