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نقش اقتصاد غیررسمی بر کارآفرینی با تاکید بر شاخص کیفیت نهادی
[The role of Informal Economy on Entrepreneurship with Emphasis on Institutional Quality Index]

Author

Listed:
  • Roudari, Soheil
  • Tehranchian, Amirmansour

Abstract

The informal economy is one of the most important factors that can influence the type of entrepreneurial activity. In this study, the role of the informal economy on the formation of entrepreneurial activities (opportunity and necessity-based entrepreneurship) with emphasis on institutional quality index in selected oil producing countries during the period 2018–2008 has been investigated by using the three stage least squares model. In this study, MIMIC model was used to extract the hidden variable of informal economy volume and principal components analysis model was used to extract the institutional quality index. The results show that increasing unemployment, increasing tax rates and increasing natural resource rent lead to an increase in the informal economy in these countries, while an increase in the informal economy leads to a decrease in opportunity-based entrepreneurship and increased necessity-based Entrepreneurship. These results suggest that if the goal is to improve opportunity-based entrepreneurship, macroeconomic policies should be designed to reduce unemployment and lower tax rates and natural resources rent, thereby reducing the size of the informal economy in these countries. It may be that in such circumstances, there is the possibility of increased opportunistic entrepreneurship and one can expect economic growth to improve in this area.

Suggested Citation

  • Roudari, Soheil & Tehranchian, Amirmansour, 2020. "نقش اقتصاد غیررسمی بر کارآفرینی با تاکید بر شاخص کیفیت نهادی [The role of Informal Economy on Entrepreneurship with Emphasis on Institutional Quality Index]," MPRA Paper 127022, University Library of Munich, Germany, revised 21 Oct 2020.
  • Handle: RePEc:pra:mprapa:127022
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy

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