Entrepreneurial Entry: Which Institutions Matter?
AbstractIn this paper we explore the relationship between the individual decision to become an entrepreneur and the institutional context. We pinpoint the critical roles of property rights and the size of the state sector for entrepreneurial activity and test the relationships empirically by combining country-level institutional indicators for 44 countries with working age population survey data taken from the Global Enterprise Monitor. A methodological contribution is the use of factor analysis to reduce the statistical problems with the array of highly collinear institutional indicators. We find that the key institutional features that enhance entrepreneurial activity are indeed the rule of law and limits to the state sector. However, these results are sensitive to the level of development.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4123.
Length: 46 pages
Date of creation: Apr 2009
Date of revision:
Publication status: published in: Grzegorz Kolodko and Jacek Tomkiewicz (eds.), 20 Years of Transformation: Achievements, Problems and Perspectives, New York: Nova, 2011
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
- P14 - Economic Systems - - Capitalist Systems - - - Property Rights
- P51 - Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
- P37 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-04-25 (All new papers)
- NEP-ENT-2009-04-25 (Entrepreneurship)
- NEP-SOC-2009-04-25 (Social Norms & Social Capital)
- NEP-TRA-2009-04-25 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Davidsson, Per & Honig, Benson, 2003. "The role of social and human capital among nascent entrepreneurs," Journal of Business Venturing, Elsevier, vol. 18(3), pages 301-331, May.
- Andrei Shleifer & Robert W. Vishny, 1998.
"The Quality of Government,"
Harvard Institute of Economic Research Working Papers
1847, Harvard - Institute of Economic Research.
- Hellman, Joel S. & Jones, Geraint & Kaufmann, Daniel, 2003. "Seize the state, seize the day: state capture and influence in transition economies," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 751-773, December.
- Baumol William J. & Litan Robert E & Schramm Carl J, 2007. "Sustaining Entrepreneurial Capitalism," Capitalism and Society, De Gruyter, vol. 2(2), pages 1-38, November.
- Minniti, Maria, 2005. "Entrepreneurship and network externalities," Journal of Economic Behavior & Organization, Elsevier, vol. 57(1), pages 1-27, May.
- Ruta Aidis & , Julia Korosteleva & , Tomasz Mickiewicz, 2008. "Entrepreneurship in Russia," Working Papers 88, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
- Acemoglu, D. & Verdier, T., 1997.
"The Choice between Market Failures and Corruption,"
DELTA Working Papers
97-06, DELTA (Ecole normale supérieure).
- Daron Acemoglu, 2005. "Constitutions, Politics and Economics: A Review Essay on Persson and Tabellini's "The Economic Effect of Constitutions"," NBER Working Papers 11235, National Bureau of Economic Research, Inc.
- Parker,Simon C., 2004.
"The Economics of Self-Employment and Entrepreneurship,"
Cambridge University Press, number 9780521828130, October.
- Parker,Simon C., 2006. "The Economics of Self-Employment and Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521030632, October.
- Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
- Glaeser, Edward & Scheinkman, Jose & Shleifer, Andrei, 2003.
"The injustice of inequality,"
Journal of Monetary Economics,
Elsevier, vol. 50(1), pages 199-222, January.
- Edward L. Glaeser & Jose Scheinkman & Andrei Shleifer, 2002. "The Injustice of Inequality," Harvard Institute of Economic Research Working Papers 1967, Harvard - Institute of Economic Research.
- Edward L. Glaeser & Andrei Shleifer, 2002. "The Injustice of Inequality," NBER Working Papers 9150, National Bureau of Economic Research, Inc.
- Yuen-Ping Ho & Poh-Kam Wong, 2007. "Financing, Regulatory Costs and Entrepreneurial Propensity," Small Business Economics, Springer, vol. 28(2), pages 187-204, March.
- Carree, Martin & Stel, Andre van & Thurik, Roy & Wennekers, Sander, 2002. "Economic development and business ownership: an analysis using data of 23 OECD countries in the period 1976-1996," Open Access publications from Maastricht University urn:nbn:nl:ui:27-3939, Maastricht University.
- Wendy Carlin & Mark Schaffer & Paul Seabright, 2006. "Where are the Real Bottlenecks? A Lagrangian Approach to Identifying Constraints on Growth from Subjective Survey Data," CERT Discussion Papers 0604, Centre for Economic Reform and Transformation, Heriot Watt University.
- Zuzana Brixiova & Balazs Egert, 2010.
"Modeling Institutions, Start-Ups and Productivity during Transition,"
CESifo Working Paper Series
2952, CESifo Group Munich.
- Zuzana Brixiova & Balázs Égert, 2010. "Modeling Institutions, Start-ups and Productivity during Transition," OECD Economics Department Working Papers 773, OECD Publishing.
- Zuzana Brixiova & Balazs Egert, 2010. "Modeling Institutions, Start-Ups And Productivity During Transition," William Davidson Institute Working Papers Series wp975, William Davidson Institute at the University of Michigan.
- Braunerhjelm, Pontus, 2010.
"Entrepreneurship, Innovation and Economic Growth - past experience, current knowledge and policy implications,"
Working Paper Series in Economics and Institutions of Innovation
224, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Braunerhjelm, Pontus, 2010. "Entrepreneurship, Innovation and Economic Growth – Past experiences, current knowledge and policy implications," Working Papers 2010:2, Swedish Entrepreneurship Forum.
- Mukherjee, Vivekananda & Mitra, Siddhartha & Banerjee, Swapnendu, 2013. "Corruption, Pricing of Public Services and Entrepreneurship in Economies with Leakage," MPRA Paper 49049, University Library of Munich, Germany.
- Sanandaji, Tino & Leeson, Peter, 2013.
2012:18, Swedish Entrepreneurship Forum.
- Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2012.
"R&D strategies and entrepreneurial spawning,"
Elsevier, vol. 41(1), pages 54-68.
- Andersson, Martin & Baltzopoulos, Apostolos & Lööf, Hans, 2010. "R&D Strategies and Entrepreneurial Spawning," Working Paper Series in Economics and Institutions of Innovation 228, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
- Mario Holzner & F. Peci, 2011. "The Impact of Customs Procedures on Business Performance: Evidence from Kosovo," wiiw Working Papers 76, The Vienna Institute for International Economic Studies, wiiw.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If references are entirely missing, you can add them using this form.