Journal of Entrepreneurship Research

Journal of Entrepreneurship Research

Investigating the Ineffectiveness of Economic Policies on Entrepreneurship in the Economy of the Islamic Republic of Iran

Document Type : Research Article

Author
Department of Economics and Accounting, faculty of Management, Economics and Accounting, University Of Hormozgan, Bandar Abbas, Iran.
Abstract
Economic policy uncertainty imposes irreversible effects on economic phenomena, so it is necessary to avoid its consequences. One of these phenomena is entrepreneurship. Therefore, examining the impact of economic policy uncertainty on entrepreneurship requires careful modeling. This paper uses a fuzzy regression model with symmetric coefficients in the GAMS program environment to investigate the effect of the uncertainty of fiscal, monetary, income, and exchange rate policies on entrepreneurship in Iran for the 2008-2021 period. The results show that reducing uncertainty in monetary, exchange rate, income, and fiscal policies have the greatest impact on the rate of entrepreneurship, respectively, so that by increasing and decreasing uncertainty of these policies (membership degrees of 0.1 and 0.9, respectively), the entrepreneurship index is equal to 8.985 and 80.623, reflecting that entrepreneurship increases sharply with increasing uncertainty in economic policies. On the other hand, the results of estimating the right and left widths show that entrepreneurship has potential in Iran’s economy, and by adopting appropriate monetary and exchange rate policies, the entrepreneurship index will rise sharply and will be in the right-width position. The results of this study are also significant in prioritizing the impact of economic policies on increasing entrepreneurship, including monetary policies that are more effective than other economic policies in achieving the goals of economic planners to reduce unemployment.
Keywords

 
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  • Receive Date 28 July 2023
  • Revise Date 09 October 2023
  • Accept Date 09 October 2023