REGIONAL COMPETITIVENESS AND NEW BUSINESS ENTREPRENEURSHIP IN PERU

Abstract

In a context of marked regional disparities in competitiveness and entrepreneurial levels, the objective of this article is to analyze the influence of competitiveness on the creation of new businesses at the level of Peru's political regions. Using panel data from 24 regions for the period 2014-2022, statisti- cal regressions were conducted applying the pooled ordinary least squares method, as well as fixed and random effects models. The results show that higher regional competitive- ness is associated with a higher rate of new business creation, and that the specific competitiveness factors with explanatory relevance are: infrastructure, the labor market, and institu- tions. In conclusion, regional competitiveness has a positive influence on the entrepreneurship of new companies in Peru.