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Economic and political institutions and entry into formal and informal entrepreneurship

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  • Erkko Autio
  • Kun Fu

Abstract

We investigated the influence of economic and political institutions on the prevalence rate of formal and informal entrepreneurship across 18 countries in the Asia-Pacific region during the period 2001–2010. We found the quality of institutions to exercise a substantial influence on both formal and informal entrepreneurship. One standard-deviation increase in the quality of economic and political institutions could double the rates of formal entrepreneurship and halve the rates of informal entrepreneurship. The two types of institutions had a complementary effect on driving entry into formal entrepreneurship, whereas only direct effects were observed for informal entry. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Erkko Autio & Kun Fu, 2015. "Economic and political institutions and entry into formal and informal entrepreneurship," Asia Pacific Journal of Management, Springer, vol. 32(1), pages 67-94, March.
  • Handle: RePEc:kap:asiapa:v:32:y:2015:i:1:p:67-94
    DOI: 10.1007/s10490-014-9381-0
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