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Determinants of Entrepreneurs' Activities: New Evidence from Cross-Country Data

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  • Doaa M. Salman

    (Faculty of Management Sciences, Modern Sciences and Arts University, MSA, Intersection 26 of July Road with Wahat Road, Egypt)

Abstract

This paper provides an empirical investigation of the main determinants of entrepreneurial activities across three groups of countries over the period 2004–2008, by specifically examining the importance of institutional setting and economic growth on entrepreneurial activities. The classification of countries is based on the Economic Freedom Index and the World Economic Forum (2011) which groups them on the basis of whether they are innovation-driven, efficiency-driven, or factor-driven countries. On the one hand, empirical results find a positive and significant role for economic freedom to accelerate entrepreneurial activities and growth in innovation and efficiency-driven countries characterized by strong institutional systems. On the other hand, the results suggest that in factor-driven countries characterized by relatively less economic freedom and weak institutions, there is a significant negative relationship between economic freedom and entrepreneurial activities.

Suggested Citation

  • Doaa M. Salman, 2014. "Determinants of Entrepreneurs' Activities: New Evidence from Cross-Country Data," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-16.
    • Handle: RePEc:wsi:jicepx:v:05:y:2014:i:03:n:s1793993314400134
    DOI: 10.1142/S1793993314400134
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    1. Pekka Ilmakunnas & Vesa Kanniainen & Uki Lammi, "undated". "Entrepreneurship, Economic Risks, and Risk-Insurance in the Welfare State," EPRU Working Paper Series 99-03, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    2. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, December.
    3. Leora Klapper & Juan Manuel Quesada Delgado, 2007. "Entrepreneurship : New Data on Business Creation and How to Promote It," World Bank Publications - Reports 11163, The World Bank Group.
    4. Audretsch,David B. & Thurik,Roy (ed.), 1999. "Innovation, Industry Evolution and Employment," Cambridge Books, Cambridge University Press, number 9780521641661.
    5. Acs, Zoltán J & Audretsch, David B & Evans, David S, 1994. "Why Does the Self-Employment Rate Vary Across Countries and Over Time?," CEPR Discussion Papers 871, C.E.P.R. Discussion Papers.
    6. Héctor Salgado-Banda, 2005. "Entrepreneurship and Economic Growth: An Empirical Analysis," DEGIT Conference Papers c010_031, DEGIT, Dynamics, Economic Growth, and International Trade.
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    Cited by:

    1. Hong, Sanghyun & Robert Reed, W. & Tian, Bifei & Wu, Tingting & Chen, Gen, 2021. "Does FDI promote entrepreneurial activities? A meta-analysis," World Development, Elsevier, vol. 142(C).

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    More about this item

    Keywords

    Economic freedom; growth; investment; unemployment; entrepreneurial activities; M13; Q32;
    All these keywords.

    JEL classification:

    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance

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