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National Business Regulations and City Entrepreneurship in Europe: A Multilevel Nested Analysis

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  • David B. Audretsch
  • Maksim Belitski
  • Sameeksha Desai

Abstract

This article provides and tests a theoretical framework with a multilevel (country–city) nested model to analyze the relationship between national business regulations (NBRs) and city level entrepreneurship. While public interest theory predicts a positive relationship between NBR and city level entrepreneurship, public choice theory predicts the opposite, a negative relationship. Based on multilevel analysis for a matched country–city panel of 228 cities across 20 European countries for the years 2004 to 2009, the empirical evidence from panel data estimation explains how changes in NBRs influence changes in city level entrepreneurial activity over time.

Suggested Citation

  • David B. Audretsch & Maksim Belitski & Sameeksha Desai, 2019. "National Business Regulations and City Entrepreneurship in Europe: A Multilevel Nested Analysis," Entrepreneurship Theory and Practice, , vol. 43(6), pages 1148-1165, November.
    • Handle: RePEc:sae:entthe:v:43:y:2019:i:6:p:1148-1165
    DOI: 10.1177/1042258718774916
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    More about this item

    Keywords

    entrepreneurship; city; government policy; regulation; Europe; multilevel JEL: L26 M13 R10 O17;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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