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Economic Regulation, Institutions and Entrepreneurship: Perspectives from the Experience of States in Transition

Author

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  • Delia-Raluca SANCARIUC

    (Doctoral School of Economics and International Affairs, Bucharest University of Economic Studies, Romania.)

Abstract

The present paper analyses the evolution of entrepreneurship in former communist countries during their transition to a market economy, seeking to identify the rules, regulations and institutions that influenced this evolution. I start by exploring the theoretical link between regulations, transition, and entrepreneurship, concluding, based on existing literature, that there exists a “vicious circle†between the three elements, which are strongly interlinked. I then observe this relationship in practice, by focusing on the case of the former communist countries from Eastern Europe and Central Asia. I analyse the interplay between data on the intensity of business activity, and multiple measures of regulations relevant for entrepreneurship in the above-mentioned countries, carrying out comparisons and attempting to draw inferences on causality. I show that the quality of regulations matters for business success, and good rules such as the protection of private property, reduced bureaucracy, low tax rates, and the control of corruption are crucial for supporting entrepreneurship.

Suggested Citation

  • Delia-Raluca SANCARIUC, 2022. "Economic Regulation, Institutions and Entrepreneurship: Perspectives from the Experience of States in Transition," International Investment Law Journal, Societatea de Stiinte Juridice si Administrative (Society of Juridical and Administrative Sciences), vol. 2(1), pages 69-82, February.
    • Handle: RePEc:sja:journ1:v:2:y:2022:i:1:p:69-82
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    References listed on IDEAS

    as
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    4. GÈrard Roland, 2001. "Ten Years After . . . Transition and Economics," IMF Staff Papers, Palgrave Macmillan, vol. 48(4), pages 1-3.
    5. Tomi Ovaska & Russell S. Sobel, 2005. "Entrepreneurship in Post-Socialist Economies," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 21(Fall 2005), pages 8-28.
    6. Simon Johnson & John McMillan & Christopher Woodruff, 2000. "Entrepreneurs and the Ordering of Institutional Reform: Poland, Slovakia, Romania, Russia and Ukraine Compared," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(1), pages 1-36, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    entrepreneurial activity; economic regulations; taxation; private property; control of corruption.;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law

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