IDEAS home Printed from https://ideas.repec.org/a/wsi/jdexxx/v26y2021i01ns1084946721500060.html
   My bibliography  Save this article

Evaluating The Determinants Of Formal Entrepreneurship: An Institutional Asymmetry Perspective

Author

Listed:
  • HABIB UR REHMAN MAKHDOOM

    (School of Management Science, Jiangsu University, P. R. China)

  • CAI LI

    (School of Management, Jiangsu University, P. R. China)

  • SHOAIB ASIM

    (School of Management Science, Jiangsu University, P. R. China)

  • MAJID MURAD

    (School of Management Science, Jiangsu University, P. R. China)

Abstract

Our study explores the effect of institutions in determining the prevalence of formal entrepreneurship and investigates the entrepreneurial choice in response to these institutions. To pursue the objectives of the study, we utilized eleven years of data from 23 countries of the Asian region. As explanatory variables, entry regulations were taken as a proxy measure of formal institutions; whereas, social capital was considered a proxy measure of informal institutions. Based on the nature of data, we applied a pooled OLS regression model to examine the influence of explanatory variables on the entrepreneurial choice. The findings proclaimed that at an individual level, both formal and informal institutions have a negative effect on entry into formal entrepreneurship. Further, the estimations of the interaction terms revealed the existence of asymmetry between formal and informal institutions regarding that negative influence on entry into formal entrepreneurship.

Suggested Citation

  • Habib Ur Rehman Makhdoom & Cai Li & Shoaib Asim & Majid Murad, 2021. "Evaluating The Determinants Of Formal Entrepreneurship: An Institutional Asymmetry Perspective," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 26(01), pages 1-22, March.
    • Handle: RePEc:wsi:jdexxx:v:26:y:2021:i:01:n:s1084946721500060
    DOI: 10.1142/S1084946721500060
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1084946721500060
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1084946721500060?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jdexxx:v:26:y:2021:i:01:n:s1084946721500060. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jde/jde.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.