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Creating the Environment for Entrepreneurship through Economic Freedom

Author

Listed:
  • Joshua C. Hall

    (West Virginia University, College of Business and Economics)

  • Robert A. Lawson

    (Southern Methodist University, Edwin L. Cox School of Business)

  • Saurav Roychoudhury

    (Capital University, School of Management and Leadership)

Abstract

In this paper we argue that the ability of people to freely trade, enter into contracts, and start businesses in a system of private property and the rule of law is crucial for productive entrepreneurship. One measure of how freely individuals can engage in economic activity is the Economic Freedom of the World (EFW) index. After examining the economic policies that harm economic freedom and possibly entrepreneurship, we highlight the correspondence between economic freedom and a number of measures of entrepreneurship. We conclude with some thoughts regarding future research involving economic freedom and entrepreneurship.

Suggested Citation

  • Joshua C. Hall & Robert A. Lawson & Saurav Roychoudhury, 2015. "Creating the Environment for Entrepreneurship through Economic Freedom," Working Papers 15-01, Department of Economics, West Virginia University.
    • Handle: RePEc:wvu:wpaper:15-01
    as

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    File URL: https://researchrepository.wvu.edu/cgi/viewcontent.cgi?article=1131&context=econ_working-papers
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    References listed on IDEAS

    as
    1. Sobel, Russell S & Garrett, Thomas A, 2002. "On the Measurement of Rent Seeking and Its Social Opportunity Cost," Public Choice, Springer, vol. 112(1-2), pages 115-136, July.
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    3. Joshua C. Hall & Robert A. Lawson, 2014. "Economic Freedom Of The World: An Accounting Of The Literature," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 1-19, January.
    4. Sobel, Russell S., 2008. "Testing Baumol: Institutional quality and the productivity of entrepreneurship," Journal of Business Venturing, Elsevier, vol. 23(6), pages 641-655, November.
    5. Christian Bjørnskov & Nicolai Foss, 2010. "Economic Freedom and Entrepreneurial Activity: Some Cross-Country Evidence," Springer Books, in: Andreas Freytag & Roy Thurik (ed.), Entrepreneurship and Culture, chapter 0, pages 201-225, Springer.
    6. Kristina Nyström, 2008. "The institutions of economic freedom and entrepreneurship: evidence from panel data," Public Choice, Springer, vol. 136(3), pages 269-282, September.
    7. Bruce L. Benson, 2004. "Opportunities Forgone : The Unmeasurable Costs of Regulation," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 19(Spring 20), pages 1-25.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    economic freedom; institutions; entrepreneurship; new firm;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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