Regulations and Entrepreneurship: Evidence from Developed and Developing Countries
Journal
Innovar
ISSN
2248-6968
0121-5051
Date Issued
2014
Author(s)
Type
Resource Types::text::journal::journal article
Abstract
<jats:p>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).</jats:p>
Subjects
developed and developing economies
;
entrepreneurial activity
;
entrepreneurship
;
gem
;
institutional economics
;
regulations