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Which Institutions Encourage Entrepreneurs to Create Larger Firms?

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  • Estrin, Saul
  • Mickiewicz, Tomasz
  • Korosteleva, Julia

Abstract

We develop entrepreneurship and institutional theory to explain variation in different types of entrepreneurship across individuals and institutional contexts. Our framework generates hypotheses about the negative impact of higher levels of corruption, weaker property rights and especially intellectual property rights, and a larger state on entrepreneurs who plan to grow faster. We test these hypotheses using the Global Entrepreneurship Monitor surveys in 55 countries for 2001-2006, applying a multilevel estimation framework. We confirm our main hypotheses but we find no significant impact from intellectual property rights.

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  • Estrin, Saul & Mickiewicz, Tomasz & Korosteleva, Julia, 2011. "Which Institutions Encourage Entrepreneurs to Create Larger Firms?," CEPR Discussion Papers 8247, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:8247
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    Cited by:

    1. Busch Rainer & Unger Alexander & Gassemi Karim & Papastamatelou Julie & May Christian, 2020. "Perception of formal and informal institutions by entrepreneurs in China, Morocco, and Germany – A cross-cultural pilot study," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(4), pages 324-338, December.
    2. Joanna Tyrowicz & Magdalena Smyk & Barbara Liberda, 2017. "Talent workers as entrepreneurs: a new approach to aspirational self-employment," Bank i Kredyt, Narodowy Bank Polski, vol. 48(6), pages 571-592.
    3. Kamilia Loukil, 2020. "Dynamic Panel Data Analysis Of The Impact Of Intellectual Property Rights On Entrepreneurship In Emerging And Developing Countries," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 5(1), pages 40-48, March.
    4. Kamilia LOUKIL, 2020. "Intellectual property rights, human capital and types of entrepreneurship in emerging and developing countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(622), S), pages 21-40, Spring.
    5. Maria Kravtsova & Aleksey Oshchepkov, 2019. "Market And Network Corruption," HSE Working papers WP BRP 209/EC/2019, National Research University Higher School of Economics.
    6. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
    7. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and cities: evidence from the post-communist world," ERSA conference papers ersa11p288, European Regional Science Association.
    8. Raymond E. Gaspar, 2017. "Large firm dominance on country’s entrepreneurship potentials," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-16, December.
    9. Maksim Belitski & Julia Korosteleva, 2011. "Entrepreneurship and Cities: Evidence from the Post-communist World," WIFO Working Papers 397, WIFO.
    10. Belitski Maksim, 2011. "Driving Urban Economic Growth – Evidence from Transition Economies," EERC Working Paper Series 11/10e, EERC Research Network, Russia and CIS.

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    More about this item

    Keywords

    Corruption; entrepreneurship; Global entrepreneurship monitor; Government; Institutions; Property rights;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • P11 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Planning, Coordination, and Reform

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