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Two-tiered entrepreneurship and economic development

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  • Leeson, Peter T.
  • Boettke, Peter J.

Abstract

This paper argues that there are two tiers of entrepreneurship important for economic development. One is concerned with investments in productive technologies that improve productivity and better service consumer needs. The other is concerned with the creation of protective technologies that secure citizens' private property rights vis-à-vis one another. In the developing world where governments cannot or do not protect citizens against predation, "institutional entrepreneurs" devise private mechanisms of property protection, providing the security required for productive entrepreneurship to grow. However, private protection technologies can be a double-edged sword. While private protection technologies enable some investment and exchange by securing citizens' property where government does not, potential constraints on these technologies' effectiveness may simultaneously limit their ability to expand investment and exchange beyond modest levels.

Suggested Citation

  • Leeson, Peter T. & Boettke, Peter J., 2009. "Two-tiered entrepreneurship and economic development," International Review of Law and Economics, Elsevier, vol. 29(3), pages 252-259, September.
  • Handle: RePEc:eee:irlaec:v:29:y:2009:i:3:p:252-259
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. DOMBOU T., Dany R., 2017. "Liberté économique et entrepreneuriat en ASS : une approche par le genre
      [Economic freedom and entrepreneurship in SSA: a gender approach]
      ," MPRA Paper 80242, University Library of Munich, Germany.
    2. Peter Boettke, 2012. "An anarchist’s reflection on the political economy of everyday life," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(1), pages 1-7, March.
    3. Boettke, Peter, 2011. "Anarchism and Austrian economics," MPRA Paper 33069, University Library of Munich, Germany.
    4. Niklas Elert & Magnus Henrekson, 2016. "Evasive entrepreneurship," Small Business Economics, Springer, vol. 47(1), pages 95-113, June.
    5. Benjamin Powell & Edward Stringham, 2009. "Public choice and the economic analysis of anarchy: a survey," Public Choice, Springer, vol. 140(3), pages 503-538, September.
    6. Elert, Niklas & Henrekson, Magnus, 2017. "Entrepreneurship and Institutions: A Bidirectional Relationship," Working Paper Series 1153, Research Institute of Industrial Economics, revised 05 May 2017.
    7. Ciarli, Tommaso & Kofol, Chiara & Menon, Carlo, 2015. "Business as unusual. An explanation of the increase of private economic activity in high-conflict areas in Afghanistan," LSE Research Online Documents on Economics 65015, London School of Economics and Political Science, LSE Library.
    8. Ciarli, Tommaso & Parto, Saeed & Savona, Maria, 2010. "Conflict and Entrepreneurial Activity in Afghanistan: Findings from the National Risk Vulnerability Assessment Data," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).
    9. Leeson, Peter T., 2010. "Rational choice, Round Robin, and rebellion: An institutional solution to the problems of revolution," Journal of Economic Behavior & Organization, Elsevier, vol. 73(3), pages 297-307, March.
    10. Leeson, Peter T. & Nowrasteh, Alex, 2011. "Was privateering plunder efficient?," Journal of Economic Behavior & Organization, Elsevier, vol. 79(3), pages 303-317, August.
    11. Daniel D’Amico, 2012. "Comparative political economy when anarchism is on the table," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 25(1), pages 63-75, March.
    12. Williamson, Claudia R., 2012. "Dignity and development," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(6), pages 763-771.
    13. Ritchie, Holly A., 2016. "Unwrapping Institutional Change in Fragile Settings: Women Entrepreneurs Driving Institutional Pathways in Afghanistan," World Development, Elsevier, vol. 83(C), pages 39-53.
    14. Adam Martin & Diana Thomas, 2013. "Two-tiered political entrepreneurship and the congressional committee system," Public Choice, Springer, vol. 154(1), pages 21-37, January.
    15. Diana W. Thomas & Peter T. Leeson, 2012. "Purpose – This paper seeks to examine how productive entrepreneurial activities, such as innovation, influence unproductive entrepreneurial activities, such as regulatory rent seeking. Design/methodol," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing, vol. 1(4), pages 84-95, April.
    16. Couyoumdjian, Juan Pablo, 2012. "Who walks out? Entrepreneurship in a global economy," International Review of Law and Economics, Elsevier, vol. 32(1), pages 158-165.
    17. Jürgen Wandel, 2011. "Business groups and competition in post-Soviet transition economies: The case of Russian “agroholdings”," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 24(4), pages 403-450, December.
    18. Peter Boettke, 2014. "Entrepreneurship, and the entrepreneurial market process: Israel M. Kirzner and the two levels of analysis in spontaneous order studies," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(3), pages 233-247, September.
    19. repec:kap:pubcho:v:174:y:2018:i:3:d:10.1007_s11127-018-0499-3 is not listed on IDEAS

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