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The Formation of New Firms: An ordered probit model approach for Latin American and Caribbean Countries

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  • Jorge Andrés Vélez Ospina
  • Jacobo Campo Robledo

Abstract

The purpose of this paper is to identify the factors that affect the creation of new firms in Latin American countries. We take into consideration economic, political, social and technological factors which should also help governments realize the areas that we found to have the greatest impact. The study relies on data from international organizations from which we construct an Ordered Probit model. The results indicate that credit and government effectiveness enhance the probability of generating new business but it depended of business density.

Suggested Citation

  • Jorge Andrés Vélez Ospina & Jacobo Campo Robledo, 2014. "The Formation of New Firms: An ordered probit model approach for Latin American and Caribbean Countries," Documentos de Trabajo 12411, Universidad Católica de Colombia.
    • Handle: RePEc:col:000444:012411
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    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions; Probabilities
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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