Relationship between entrepreneurship index and financial development in OECD countries: Panel data analysis

The relationship between entrepreneurship and financial development has been subject of research with the development of competitive environment in commercial life. In many developed and developing countries, it is recognized that entrepreneurship and innovation terms are the most important factors for the economic growth that comes with financial development. Lots of study existig in the literature is adressed to aim of indicate relation between entrepreneurship and economic development. There are limited study about enrepreneurship and financial development. In this study, the relationship between the entrepreneurship data and financial developments of the 15 OECD countries between the years 2006-2016 is examined within the data sets that are accessible and accessible to the research subject. Countries included in the study are Belgium, Chile, Denmark, Finland, France, Great Britain, Greece, Hungary, Ireland, Italy, Japan, Norway, Slovenia, Turkey, United States . Financial developments of these countries included in our study have been demonstrated through various independent variables. Entrepreneurial factors affecting the financial development have been investigated and these factors have been evaluated with alternative models established by using dynamic panel data analysis. In this study, entrepreneurship index is used as dependent variable and financial developments indicators (share of local loans provided by financial sector, the ratio of net investment (INV) to GDP in non-financial assets, the ratio of foreign direct investment (net inflows) to GDP, inflation, local loans extended by banks to the private sector (% GDP), stock market capitalization, bank deposits (% GDP), bank concentration (%),volatility in stock prices, Return on equity (% Profitability), GDP, liquid liabilities (% GDP) ) are used as independent variables.