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Misallocation of Entrepreneurial Talent in Postconflict Environments

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Abstract

Entrepreneurship is generally regarded as a productive force of change, innovation, and development in modern economies. Particularly for institutionally less developed environments, however, it has been argued that the same energy and talent can also be allocated to unproductive ends. In this article, we present a model that analyzes the allocation of entrepreneurial talent into productive activities and raiding in Postconflict environments, where most formal and informal institutions have broken down. We show that the distribution of initial wealth and entrepreneurial talent play a decisive role. Our analysis also suggests that microcredits can support the transition to a productive equilibrium, because they help to overcome credit constraints without creating incentives for raiding.

Suggested Citation

  • M. Sanders & U. Weitzel, 2013. "Misallocation of Entrepreneurial Talent in Postconflict Environments," Journal of Conflict Resolution, Peace Science Society (International), vol. 57(1), pages 41-64, February.
    • Handle: RePEc:sae:jocore:v:57:y:2013:i:1:p:41-64
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    Cited by:

    1. Voeten, J. & Naudé, Wim, 2013. "Internal Regulation of Innovation Externalities for Development : Lessons from Vietnam," Other publications TiSEM fcbdcd1e-ccf9-4b33-952d-8, Tilburg University, School of Economics and Management.
    2. Djula Borozan & Josip Arneric & Ilija Coric, 2017. "A comparative study of net entrepreneurial productivity in developed and post-transition economies," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 855-880, September.
    3. Alexandre Padilla & Nicolás Cachanosky, 2016. "Indirectly productive entrepreneurship," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 5(2), pages 161-175, August.
    4. Tilman Brück & Patricia Justino & Charles Patrick Martin-Shields, 2017. "Conflict and development: Recent research advances and future agendas," WIDER Working Paper Series wp-2017-178, World Institute for Development Economic Research (UNU-WIDER).
    5. J.J. Voeten & W.A. Naud�, 2014. "Regulating the negative externalities of enterprise cluster innovations: lessons from Vietnam," Innovation and Development, Taylor & Francis Journals, vol. 4(2), pages 203-219, October.
    6. Tilman Brück & Patricia Justino & Charles Patrick MartinShields, 2017. "Conflict and development: Recent research advances and future agendas," WIDER Working Paper Series 178, World Institute for Development Economic Research (UNU-WIDER).
    7. Sameeksah Desai & Zoltán J. Ács & Utz Weitzel, 2015. "A Model of Destructive Entrepreneurship: Insight for Conflict and Postconflict Recovery," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 1, pages 3-23, Edward Elgar Publishing.
    8. Julien Hanoteau & Gandhi Pawitan & Virginie Vial, 2021. "Does social capital reduce entrepreneurs' petty corruption? Evidence across Indonesian regions," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 651-670, June.
    9. Audretsch, David Bruce & Belitski, Maksim & Guerrero, Maribel, 2023. "Sustainable orientation management and institutional quality: Looking into European entrepreneurial innovation ecosystems," Technovation, Elsevier, vol. 124(C).

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