Impact of tourism development on latent entrepreneurship in BRICS

Abstract

Objective: The study aims to examine the impact of tourism development on latent entrepreneurship in BRICS countries (Brazil, Russia, India, China, and South Africa). Research Design & Methods: The study used panel data of BRICS countries for the period of 2001-2020. The article employs the quantitative method including the panel dynamic ordinary least square approach to analyse the data. Findings: The results showed that tourism provides greater opportunities for latent entrepreneurs in BRICS countries. The results of the control variables showed that economic complexity did not spur entrepreneurial inspiration while foreign direct investment improves entrepreneurial development in BRICS economies. Implications & Recommendations: The study concluded that policymakers should concentrate efforts on improving the tourism sector to accelerate the pace of entrepreneurial development. Appropriate policies should be implemented to further ease the business activities in the group of BRICS economies. Contribution & Value Added: The study adds value to the literature by providing an empirical analysis of the nexus between tourism development and entrepreneurship. The study focused on BRICS countries to see how tourism development springs up entrepreneurial inspiration among adults in emerging economies. The study models entrepreneurship function within the framework of the panel co-integrating regression approach. This is a powerful technique that accounts for endogeneity and serial correlation based on the first-different stationary of the variables.