ABSTRACT
This chapter investigates the relationship between growth and financial development while also accounting for nascent entrepreneurship. The chapter controls for other factors affecting growth, such as the rate of inflation and the ease of doing business, and accounts for the level of development of countries. The chapter uses merged data on entrepreneurship and country-level macroeconomic data. The results indicate that financial development matters for economic growth even when controlling for nascent entrepreneurship. The findings show that there is no significant positive effect of nascent entrepreneurship on economic growth. However, there is a need to account for the mediating effects of finance on entrepreneurship.
