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Export entrepreneurship promotion: The role of regulation-induced time delays and institutions

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  • Munemo, Jonathan

Abstract

This paper examines the relationship between regulation-induced time delays and export entrepreneurship in a panel of 59 countries for the period 2006 to 2014. The paper finds robust evidence that regulations which cause lengthy time delays in moving a standard container of goods from the factory to the seaport significantly reduce export entry rate. These findings support the hypothesis that decreasing regulation-induced time delays expands export entrepreneurship by reducing the cost of exporting. Additionally, the paper finds that superior quality institutions significantly enhance the positive impact of lower regulatory time barriers on export entrepreneurship. Stronger protection of private property rights is the most important measure of institutional quality that aides the favorable impact of lower regulation-induced time barriers on export entrepreneurship. Furthermore, a reduction in regulation-induced time barriers has a positive effect on net entry rate and survival rates of export entrants, and high-quality institutions significantly increase the magnitude of this positive outcome.

Suggested Citation

  • Munemo, Jonathan, 2022. "Export entrepreneurship promotion: The role of regulation-induced time delays and institutions," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 262-275.
    • Handle: RePEc:eee:reveco:v:77:y:2022:i:c:p:262-275
    DOI: 10.1016/j.iref.2021.10.009
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    4. Sèna Kimm Gnangnon, 2022. "Aid for Trade is more effective when the trading environment is more predictable," Economic Affairs, Wiley Blackwell, vol. 42(3), pages 453-476, October.

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    More about this item

    Keywords

    Trade costs; Regulations; Export entrepreneurship; Institutional quality;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • F1 - International Economics - - Trade
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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