Professor, School of Business & Industry,
Florida A&M University and Dept. of Scientific Computing,
Florida State University

"Decoupling Entrepreneurship Capital from Capital Stock"

Abstract:

Per capita real gross domestic product adjusted for purchasing power parity (G) is parsimoniously explained by capitalism (C), democracy (D) and rule of law(R). G is estimated from a CDR index equal to the vector inner (dot) product of global invariant parameters [1.53 0.14 0.23 -1.21] and country specific [C D R C∙D∙R]. The data are for year 2014 and 79 countries that represent practically all people in the world. C is measured by total capitalization then split into human capital of entrepreneurship imagination and creativity and capital stock of knowledge, machines, computers, training, recording devices etc. The contribution of entrepreneurship to G is found to be 6 times that of capital stock.