IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v14y2023i3d10.1007_s13132-022-00895-1.html
   My bibliography  Save this article

How Does Institutional Quality Affect Business Start-Up in High and Middle-Income Countries? An International Comparative Study

Author

Listed:
  • Tarek Ben Ali

    (Higher Institute of Business Administration of Gafsa)

Abstract

By applying dynamic panel data models and using worldwide governance indexes and popular country-level entrepreneurship measures over the period 1999 through 2018, this research aims to study why and how does institutional quality affect business start-up in high- and middle-income countries, after controlling for factors related to the institutional and macroeconomic environments. Our results indicate, first, that good governance promotes largely entrepreneurship in high-income countries, while its impact is moderate in middle-income countries. Second, the size and strength of the relationship between institutions and entrepreneurship vary with the country’s economic development and with the chosen measure of entrepreneurship. Third, our findings reveal that the debate over whether corruption “sands” or “greases” the entrepreneurship wheels remains not yet settled even in the case of developed countries. Finally, our investigation highlights some policy implications that are essential for the development of an appropriate entrepreneurship policy to provide the engine of the knowledge economy.

Suggested Citation

  • Tarek Ben Ali, 2023. "How Does Institutional Quality Affect Business Start-Up in High and Middle-Income Countries? An International Comparative Study," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(3), pages 2830-2877, September.
    • Handle: RePEc:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-00895-1
    DOI: 10.1007/s13132-022-00895-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-022-00895-1
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-022-00895-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:14:y:2023:i:3:d:10.1007_s13132-022-00895-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.