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The coupling between entrepreneurship and public policy: tight in develped countries but loose in developing countries

  • Thomas Schøtt
  • Kent Wickstrøm Jensen

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    In this paper we compare the coupling between entrepreneurship policy and entrepreneurship activity in developed and developing countries. Using new institutional arguments, we argue that developing countries will are prone to implement policies that (1) are based on experiences in developed countries which have not proven to transfer fittingly to developing economies, (2) are only partly implemented and are not internally consistent as a result of a lack of resources to do so, and (3) are more beneficial on paper than on actual activity. Following this perspective, the coupling between entrepreneurship policy and entrepreneurship activity is hypothesized to be lower for developing countries than for developed countries. Using GEM data correlating the TEA index of early-phase entrepreneurship with indicators of policies obtained from key expert informants supports this assertion.

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    File URL: http://www.econ.uchile.cl/uploads/publicacion/ec3f363c-5d74-4771-87e6-9cbf38e847cb.pdf
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    Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

    Volume (Year): 35 (2008)
    Issue (Month): 2 Year 2008 (December)
    Pages: 195-214

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    Handle: RePEc:udc:esteco:v:35:y:2008:i:2:p:195-214
    Contact details of provider: Web page: http://www.econ.uchile.cl/

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    1. Zoltan Acs & Laszlo Szerb, 2007. "Entrepreneurship, Economic Growth and Public Policy," Small Business Economics, Springer, vol. 28(2), pages 109-122, March.
    2. Brett Anitra Gilbert & David B. Audretsch & Patricia P. McDougall, 2004. "The Emergence of Entrepreneurship Policy," Small Business Economics, Springer, vol. 22(3_4), pages 313-323, 04.
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