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Regulations and Entrepreneurship: Evidence from Developed and Developing Countries

Author

Listed:
  • Claudia Alvarez
  • José Ernesto Amorós
  • David Urbano

    (School of Business and Economics, Universidad del Desarrollo)

Abstract

This paper uses an institutional approach to examine the effect of regulations on entrepreneurial activity, comparing developed and developing countries. Through an unbalanced panel data set of 49 countries over the period 2001-2010 and using a combination of international databases we find a positive influence of government spending and entrepreneurship legislation on entrepreneurial activity. It was also found that regulations may have different impacts on entrepreneurship according to the country’s economic development. Thus, in developed economies unemployment legislation is positively related to entrepreneurship, while this relationship is negative in other cases. This paper offers new insights both from a conceptual perspective (advancing theory concerning the factors that influence entrepreneurial activity) and a practical viewpoint (for the design of government policies to foster entrepreneurship).

Suggested Citation

  • Claudia Alvarez & José Ernesto Amorós & David Urbano, 2014. "Regulations and Entrepreneurship: Evidence from Developed and Developing Countries," Past Working Papers 02, Universidad del Desarrollo, School of Business and Economics, revised Nov 2014.
  • Handle: RePEc:dsr:pastwp:02
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    2. Huanmei Li & Graciela Zubielqui & Allan O’Connor, 2015. "Entrepreneurial networking capacity of cluster firms: a social network perspective on how shared resources enhance firm performance," Small Business Economics, Springer, vol. 45(3), pages 523-541, October.
    3. Stuti Haldar, 2022. "A landscape level analysis of entrepreneurship and sustainable energy transitions: Evidences from Gujarat, India," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 489-502, August.

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    More about this item

    Keywords

    Entrepreneurship; entrepreneurial activity; regulations; institutional economics; developed and developing economies; GEM.;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy

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