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Fiscal policy before and during COVID-19 and its impact on the creation of new comapnies

Author

Listed:
  • Sokołowska Anetta

    (Department of Entrepreneurship, University of Information Technology and Management in Rzeszow, Poland)

  • Trasberg Viktor

    (Department of Aviation Services, Estonian Aviation Academy, Estonia)

Abstract

The article analyses relationships between fiscalism indicators and the number of newly registered companies (i.e. a new business density index). The study covered the period from 2015 to 2020 (inclusive). Considering the timeframe, the purpose is to determine the impact of COVID-19 on new firm formation. Two principal research hypotheses are formulated. The first hypothesis assumes a negative impact of fiscal burden on the creation of new firms. The second hypothesis assumes that COVID-19 reduced interest in starting new business entities. The research results demonstrate that there is a negative relationship between fiscalism and new firm formation. Contrary to expectations, the research has shown that COVID-19 did not adversely affect the creation of new companies, as the new business density index remained stable in most of the analyzed countries.

Suggested Citation

  • Sokołowska Anetta & Trasberg Viktor, 2022. "Fiscal policy before and during COVID-19 and its impact on the creation of new comapnies," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 18(4), pages 61-76, December.
    • Handle: RePEc:vrs:finiqu:v:18:y:2022:i:4:p:61-76:n:6
    DOI: 10.2478/fiqf-2022-0028
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    More about this item

    Keywords

    fiscal policy; new business density; entrepreneurship; COVID-19;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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