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Entrepreneurship, Reforms, and Development: Empirical Evidence

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  • Mina Baliamoune-Lutz

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Abstract

We examine how entrepreneurship and institutional and policy reforms affect development (proxied by the rate of growth in per–capita income). We do so by performing Arellano-Bond GMM estimations on annual data for a large group of developing and developed countries, and covering the period 1990-2002. We focus in particular on the interplay of trade and institutional reforms and entrepreneurship. The empirical results indicate that the interplay of entrepreneurship and institutions, and the interplay of entrepreneurship and policy reforms, influence the growth effects of entrepreneurship. However, the effects are strikingly different. The impact of institutional reform is positive when the level of entrepreneurship is low and negative when it is high. On the other hand, the effect of policy reform is negative when entrepreneurial activity is weak and positive when it is strong. These results are robust to the inclusion of other control variables.

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Bibliographic Info

Paper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number 38-2007.

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Length: 29 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:icr:wpicer:38-2007

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Keywords: development; growth; entrepreneurship; institutions; policy reform;

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References

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Cited by:
  1. Mina Baliamoune-Lutz & Zuzana Brixiová & Léonce Ndikumana, 2012. "Credit constraints and productive entrepreneurship in Africa," ICER Working Papers 23-2011, ICER - International Centre for Economic Research.
  2. Mina Baliamoune-Lutz & Pierre Garello, 2014. "Tax structure and entrepreneurship," Small Business Economics, Springer, vol. 42(1), pages 165-190, January.
  3. Mina Baliamoune-Lutz, 2008. "On Growth and Development," ICER Working Papers 13-2008, ICER - International Centre for Economic Research.
  4. Zuzana Brixiova, 2010. "Unlocking Productive Entrepreneurship in Africa’s Least Developed Countries," African Development Review, African Development Bank, vol. 22(3), pages 440-451.
  5. Zuzana Brixiova, 2013. "Modeling productive entrepreneurship in developing countries," Small Business Economics, Springer, vol. 41(1), pages 183-194, June.
  6. Baliamoune-Lutz, Mina, 2009. "Entrepreneurship and Reforms in Developing Countries," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  7. Mina Baliamoune-Lutz & Zuzana Brixiová & Léonce Ndikumana, 2011. "Credit Constraints & Productive Entrepreneurship in Africa," William Davidson Institute Working Papers Series wp1025, William Davidson Institute at the University of Michigan.

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