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National institutions and the allocation of entrepreneurial effort

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  • Bowen, Harry P.

    ()

  • De Clercq, D.

    (Vlerick Leuven Gent Management School)

Abstract

This paper examines how the allocation of entrepreneurial effort within a country is influenced by the country’s institutional environment. We hypothesize that the likelihood that entrepreneurs launch a growth-oriented start-up is associated with the institutional environment in which entrepreneurs are embedded. We test our hypothesis using data on 44 countries over the three-year period from 2002 to 2004. The data are drawn from two sources: the Global Entrepreneurship Monitor and the World Economic Forum’s Executive Opinion Survey. Our findings indicate that the likelihood of a growth-oriented start-up is positively related to a country’s level of human capital targeted at entrepreneurship and the level of regulatory protection, but is negatively related to the extent of corruption and mistrust in public officials.

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Bibliographic Info

Paper provided by Vlerick Leuven Gent Management School in its series Vlerick Leuven Gent Management School Working Paper Series with number 2005-15.

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Length: 37 pages
Date of creation: 05 Oct 2005
Date of revision:
Handle: RePEc:vlg:vlgwps:2005-15

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Related research

Keywords: institutions; entrepreneurship; resource; allocation;

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