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Entrepreneurship, corruption and economic freedom

Author

Listed:
  • Gregory Dempster
  • Justin Isaacs

Abstract

Purpose - The purpose of this paper is to extend the literature on entrepreneurship and corruption by examining the link between productive and unproductive entrepreneurial activities as moderated by economic freedom. Specifically, the authors hypothesize that various aspects of economic freedom are contextual in their moderating effects, so that what matters in terms of economic freedom will depend on other factors such as levels of human capital. Design/methodology/approach - The authors test these hypotheses by incorporating aggregated and disaggregated measures from the Economic Freedom of the World into a model of international entrepreneurial activity. Findings - The results indicate that not only is economic freedom a major determinant of the level of entrepreneurial activity across countries, as previously verified, but that it also moderates the relationship between human capital, corruption, and productive entrepreneurship. Originality/value - These findings resolve many of the ambiguities previously identified in the literature on the link between corruption, entrepreneurship, and growth.

Suggested Citation

  • Gregory Dempster & Justin Isaacs, 2017. "Entrepreneurship, corruption and economic freedom," Journal of Entrepreneurship and Public Policy, Emerald Group Publishing Limited, vol. 6(2), pages 181-192, August.
    • Handle: RePEc:eme:jepppp:jepp-08-2016-0030
    DOI: 10.1108/JEPP-08-2016-0030
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    Citations

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    Cited by:

    1. Juan M. Dempere & Alexandrina M. Pauceanu, 2022. "The impact of economic-related freedoms on the national entrepreneurial activity," Journal of Innovation and Entrepreneurship, Springer, vol. 11(1), pages 1-20, December.
    2. Aleksandra Gawel & Timo Toikko, 2023. "Quality of Governance and Welfare Generosity as Institutional Predictors of Entrepreneurship: European Perspective," SAGE Open, , vol. 13(4), pages 21582440231, October.
    3. Marcus Box & Karl Gratzer & Xiang Lin, 2023. "Self-employment, corruption, and property rights: a comparative analysis of European and CEE economies," SN Business & Economics, Springer, vol. 3(1), pages 1-29, January.
    4. Dvouletý, Ondřej, 2018. "How to analyse determinants of entrepreneurship and self-employment at the country level? A methodological contribution," Journal of Business Venturing Insights, Elsevier, vol. 9(C), pages 92-99.
    5. Gheorghe Savoiu & Simina Brostescu, 2017. "Three International Statistical Indicators And Their Factorial Impact On The Modelling Of Foreign Investments In Romania," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 65(8), pages 174-188, August.
    6. Potts Mark D & Affholter Joseph A & Harless Sydney, 2021. "Entrepreneurship Factors Among Developed Countries and Emerging Regions," South East European Journal of Economics and Business, Sciendo, vol. 16(2), pages 82-100, December.
    7. Çağatay KARAKÖY & Alptekin ULUTAŞ & Darjan KARABASEVIC & Salim ÜRE & Ali Oğuz BAYRAKÇIL, 2023. "The Evaluation of Economic Freedom Indexes of EU Countries with a GREY Hybrid MCDM Model," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 129-144, March.

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