The Impact of Entrepreneurship on the Balassa Index : A Panel Data Analysis for Western Europe and the USA (2000-2006)

In the present paper it will be pointed out econometrically that entrepreneurial calibre improves Balassa index. The contribution of this paper is that a new method to estimate entrepreneurial calibre will be introduced. Data are annual and cover most Western European countries and the USA for the period 2000-2006. The estimation of the panel data model is made feasible through the Eviews software package. Finally, entrepreneurship, as in this paper estimated, is independent from either the country size, or sector size, or even firm size