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

In: Foreign Direct Investment and Small and Medium Enterprises Productivity and Access to Finance

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Abstract

This chapter 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, efficiencydriven, 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, 2015. "Determinants of Entrepreneurs' Activities: New Evidence from Cross-Country Data," World Scientific Book Chapters, in: Khee Giap Tan & Kong Yam Tan (ed.), Foreign Direct Investment and Small and Medium Enterprises Productivity and Access to Finance, chapter 8, pages 145-160, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814678810_0008
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    Cited by:

    1. is not listed on IDEAS
    2. 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).
    3. Doaa Salman & Noha Fawzy & Zeinab Zaazou, 2025. "The role of digitalization and education in empowering Egyptian women entrepreneurs," Future Business Journal, Springer, vol. 11(1), pages 1-19, December.

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    JEL classification:

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

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