“Prosperity/pull or Recession/push hypothesis”: Empirical evidence from Nigeria’s entrepreneurial activities

Abubakar S. Garba

Abstract


The paper aimed at investigating the influence of economic growth and standard of living on
entrepreneurial activities in Nigeria. The study involves time series analysis using vector autoregression framework.
The data were collected from various relevant government agencies for the period 1980 to 2010. The result reflects the
left hand of U shaped curve as found in other previous studies in developing countries and supports the recession/push
hypothesis. The study also revealed that as the standard of living improves in the country, necessity entrepreneurs
decline their interest in entrepreneurship because they could have other options for wage employment opportunities.
The proliferation of necessity entrepreneurs because of the dwindling economic position has insignificant effect on the
country’s economic growth as well as standard of living. There is little or no attempt by the previous studies to examine
the influence of country’s standard of living on entrepreneurship. This study is unique by going beyond the effect of
economic growth to capture the status, economic power and wellbeing of the population into analysis


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