Exploring the Relationship between Financial Development and Entrepreneurship using GMM Insights from the MENA Region

The dataset covers 12 countries from the MENA region—Algeria, Morocco, Tunisia, Egypt, Türkiye, United Arab Emirates, Saudi Arabia, Oman, Bahrain, Jordan, Kuwait, and Qatar—over the period 2006 to 2020. This panel structure provides both cross-country and time-series variation, allowing for a robust econometric analysis of the relationship between financial development and entrepreneurship. The Excel file contains country-level observations, with each country represented annually throughout the 15-year period. The data includes a dependent variable (entrepreneurship), two main independent variables (financial development indicators), and several control variables, as outlined in Table 1. Dependent Variable: Entrepreneurship (ENT): Measured as new business density per 1,000 people ages 15–64, obtained from the World Bank. Independent Variables: Financial Development Index (FDI): Computed as the average of the Financial Institutions Index (FII) and Financial Markets Index (FMI), sourced from the IMF. Financial Institutions Index (FII): Captures depth, access, and efficiency of financial institutions. Financial Markets Index (FMI): Captures depth, access, and efficiency of financial markets. Control Variables: GDP (Log): The natural logarithm of gross domestic product (World Bank). Foreign Direct Investment (FRN): Net inflows as a percentage of GDP (World Bank). Inflation (INF): Annual GDP deflator, representing price changes in the economy (World Bank). Natural Resource Rents (NRR): Total natural resource rents as a percentage of GDP (World Bank). Political Stability (PLT): Index measuring political stability and absence of violence/terrorism (World Bank). GDP Growth (GDPG): Annual GDP growth rate in percentage terms (World Bank). The word document provide the Stata commands used and the results.