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Entrepreneurship, Economic Development and Institutional Environment: Evidence from OECD countries

Author

Listed:
  • Rafik Abdesselam

    (ERIC - Entrepôts, Représentation et Ingénierie des Connaissances - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon, COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne)

  • Jean Bonnet

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)

  • Patricia Renou-Maissant

    (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique)

  • Mathilde Aubry

    (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School)

Abstract

The purpose of this article is to establish a typology of entrepreneurship for OECD countries over the 1999-2012 period. Our aim is to draw a distinction between managerial and entrepreneurial economies, to identify groups of countries with similar economic and entrepreneurial activity variables, and to determine the economic and institutional drivers of entrepreneurial activities in each group. We show that the level of development, sectoral specialization, and institutional variables related to entrepreneurship, functioning of the labor market and openness of the country are decisive to understand differences in entrepreneurship activity across countries. Results show that the pre-crisis period, from 1999 to 2008, is a period of growth favorable to entrepreneurship. The financial crisis involved a break in entrepreneurial dynamism, with agricultural economies withstanding the financial crisis better. The 2010-2012 period of recovery is a period of a sharp slowdown in entrepreneurial activity, during which the countries that are less dependent on the financial sector proved to be the most resilient in terms of entrepreneurial activity. Nevertheless, it is the advanced knowledge economies with developed financial markets, fewer institutional regulatory constraints, and greater scope for qualitative entrepreneurship that show lower unemployment rates. These findings have important implications for the implementation of public policy in order to promote entrepreneurial activity and reduce unemployment. Résumé :L'objectif de cet article est d'élaborer une typologie des activités entrepreneuriales des pays de l'OCDE durant la période 1999-2012. Notre intention est d'établir une distinction entre les économies managériales et entrepreneuriales, d'identifier des groupes de pays ayant des comportements économiques et entrepreneuriaux similaires et d'identifier 2 les déterminants économiques et institutionnels des activités entrepreneuriales dans chaque groupe. Nous montrons que le niveau de développement, la spécialisation sectorielle ainsi que les variables institutionnelles liées à l'entrepreneuriat, au fonctionnement du marché du travail et à l'ouverture du pays sont déterminants pour appréhender les différences nationales en matière d'activité entrepreneuriale. Les résultats montrent que la période antérieure à la crise, 1999-2008, est une période de croissance favorable à l'entrepreneuriat. La crise financière a provoqué une rupture du dynamisme entrepreneurial ; ce sont les économies agricoles qui ont le mieux résisté à la crise financière. La période de reprise 2010-2012 est une période de fort ralentissement de l'activité entrepreneuriale, durant laquelle les économies dépendant largement du secteur financier sont les plus affectées par la crise en terme d'activité entrepreneuriale. Néanmoins ce sont les économies avancées de la connaissance caractérisées par des marchés financiers développés, peu de contraintes institutionnelles de régulation et un l'entrepreneuriat de qualité qui affichent les taux de chômage les plus faibles. Ces résultats ont des implications importantes pour la mise en oeuvre des politiques publiques visant à promouvoir l'entrepreneuriat et à réduire le chômage.

Suggested Citation

  • Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant & Mathilde Aubry, 2017. "Entrepreneurship, Economic Development and Institutional Environment: Evidence from OECD countries," Post-Print hal-05031458, HAL.
  • Handle: RePEc:hal:journl:hal-05031458
    Note: View the original document on HAL open archive server: https://hal.science/hal-05031458v1
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    References listed on IDEAS

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    1. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521728355, March.
    2. Parker,Simon C., 2009. "The Economics of Entrepreneurship," Cambridge Books, Cambridge University Press, number 9780521899604, March.
    3. Man Zhang & Qian Gao & Hyuk-Soo Cho, 2017. "The effect of sub-national institutions and international entrepreneurial capability on international performance of export-focused SMEs: Evidence from China and South Korea," Journal of International Entrepreneurship, Springer, vol. 15(1), pages 85-110, March.
    4. Michael Siemer, 2014. "Firm Entry and Employment Dynamics in the Great Recession," Finance and Economics Discussion Series 2014-56, Board of Governors of the Federal Reserve System (U.S.).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Entrepreneurship Data analysis methods Entrepreneurial/Managerial economies JEL codes : L26 C38 O1; Entrepreneurship; Data analysis methods; Entrepreneurial/Managerial economies JEL codes : L26; C38; O1;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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