Education, Economic Growth, and Digital Infrastructure as Drivers of Entrepreneurship: A Panel Data Analysis

Abstract

This paper analyzes the association between education, economic growth, digital infrastructure and entrepreneurship based on panel data of 150 countries for 2010-2024. In performing random-effects GLS regression with Driscoll–Kraay standard errors, education level (β = 0.003, p < 0.001) and economic growth (β = 0.004, p < 0.001) appear to be significant positive drivers of entrepreneurship (new business density). Digital infrastructure shows the highest association (β = 0.070, p < 0.001). By mediation analysis, the education–entrepreneurship relationship was significantly mediated by digital infrastructure (indirect effect = 0.00049, Sobel z = 4.30, p < 0.001) accounting for approximately 13.5% of the total effect. Regarding the mediation of economic growth through digital infrastructure, it is also significant but inconsistent mediation (indirect effect = –0.00035, Sobel z = –2.27, p < 0.05), indicating that economic growth directly drives entrepreneurship, but its negative relationship with digital infrastructure partially reduces this positive relation. These results build on the RBV, as they show how digital infrastructure acts as a resource-conversion mechanism, converting human resources into entrepreneurial results. The findings underscore the need for a comprehensive approach to investments in education, digital infrastructure, and economic resilience to build entrepreneurial ecosystems.