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Culture, Political Institutions and the Regulation of Entry

In: Entrepreneurship and Culture

Author

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  • Rui Baptista

    (Instituto Superior Técnico)

Abstract

This paper examines the relationship between cultural values, political institutions and government regulation of new firm entry. A series of hypotheses are developed and tested using data coupled from a variety of sources in comparative political economy and cross-cultural psychology for 53 countries. If society’s general attitudes toward uncertainty and power inequality are embedded in its laws and institutions, then such values should mediate the intensity with which economic incentives affect regulatory procedures and outcomes. Empirical results suggest that entry regulation levels are correlated with the way people in different countries deal with uncertainty and accept inequality of power. Moreover, these intrinsic cultural values act as mediators for the correlations between regulatory intensity and economic, political and institutional variables.

Suggested Citation

  • Rui Baptista, 2010. "Culture, Political Institutions and the Regulation of Entry," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 55-77, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-87910-7_4
    DOI: 10.1007/978-3-540-87910-7_4
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