Relationship between social entrepreneurship and economic growth: Empirical applications for OECD countries and Turkish provinces

The main purpose of this study is to examine the effect of social entrepreneurship on economic growth. In this context, two separate samples were selected. In the first sample, within the scope of private sector-non-governmental organizations (NGO) social entrepreneurship activity (resource matching), the effects of in-kind and cash aids provided by private sector companies and NGOs on behalf of corporate social responsibility (private sector- NGOs resource allocation) are analyzed on economic growth. The country-based panel dataset covers 24 Economic Development and Cooperation Organization (OECD) countries for the 1970-2014 period. Panel ARDL method (PMG estimator) was used for country-based analysis. In the second sample (province-based), within the scope of public social entrepreneurship activity (resource matching), the effect of entrepreneurship supports (public resource allocation) realized by the Small and Medium Enterprises Development and Support Administration (SMEDSA) was analyzed on economic growth. Provincial-based panel dataset covers 81 provinces for the 2012-2016 period. Panel data method (Driscoll-Kraay estimator) was used for province-based analysis. The contribution of the study is that the impact of social entrepreneurship on economic growth in country and provincial basis has not been previously analyzed using available data. According to the results of the country-based analysis, social entrepreneurship affects economic growth positively both in the long run and in the short run. According to the results of the province-based analysis, social entrepreneurship positively affects the economic growth of the provinces. It can be stated that social entrepreneurship is an important determinant of economic growth on both country and provincial basis within the framework of the results.