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Entrepreneurs' Acceptance of Formal Institutions: A Cross-country Analysis

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Author Info
Andreas Freytag () (Friedrich-Schiller-University Jena, School of Economics and Business Administration)
Florian Noseleit () (European Centre for International Political Economy (ECIPE))

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Abstract

Institutional settings and the resulting incentive structures are crucial for economic development. The type of entrepreneurial activity and the entrepreneurial effort are especially dependent on underlying incentive structures. We argue that institutions with better incentive structures for entrepreneurs are perceived as being of higher quality by this group. We find empirical evidence that high institutional quality increases the willingness of the self-employed to accept these institutions. Furthermore, institutional quality affects the deviation in acceptance of self-employed to non-self-employed such that lower institutional quality is related to less acceptance by entrepreneurs compared to the rest of society.

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Publisher Info
Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics, Thueringer Universitaets- und Landesbibliothek in its series Jena Economic Research Papers in Economics with number 2009-047.

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Date of creation: 02 Jul 2009
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Handle: RePEc:jrp:jrpwrp:2009-047

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Related research
Keywords: Entrepreneurship; self-employment; institutions; cross-country study;

Find related papers by JEL classification:
L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
K11 - Law and Economics - - Basic Areas of Law - - - Property Law
O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
P48 - Economic Systems - - Other Economic Systems - - - Other Economic Systems: Political Economy; Legal Institutions; Property Rights

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This page was last updated on 2009-11-18.

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