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Innovative entrepreneurship and quality of life. The case of Ecuador

Abstract:

Purpose: This article is based on the assumption that entrepreneurship improves quality of life (HDI). Its main objective is to establish causal relationships between entrepreneurship variables such as cbkp_redits, innovation (R&D), business growth, foreign direct investment and the Global Competitiveness Index and how these have influenced a country's development. Design/methodology/approach: To analyse and validate this assumption, relevant information has been extracted about Ecuador (the subject of the study) for the 1998–2017 period. The information has received the respective econometric treatment, through a multivariate estimation by the autoregressive vector (ARV) method that made it possible to establish impulse-response functions. Results: The results indicate that there is a significant and positive statistical impact between the variables related to entrepreneurship and quality of life (HDI), with the exception of “Innovation”, which is not representative in the model, demonstrating that the investment made at country level in R&D is not sufficient to have an impact on the HDI. It was also determined that promoting entrepreneurship would be useful as this would alter the trend of the variables, making them conducive to increasing the HDI. Originality/value: This article is one of the few to address this issue. It includes the self-regressive vector model as a key methodology used to evaluate and establish public policies. RVM has provided positive results in the field of economics and can be adopted in the area of entrepreneurship.