The Determinants of Entrepreneurship at the Country Level: A Panel Data Approach

Gonçalo Brás and Soukiazis Elias ()
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Soukiazis Elias: Ceber and Faculty of Economics, University of Coimbra, Avenida Dias da Silva, nº 165,3004-512 Coimbra, Portugal

Entrepreneurship Research Journal, 2019, vol. 9, issue 4, 17

Abstract: The aim of this study is to analyze the impact of a variety of factors on the total entrepreneurial activity rate (TEA). A panel data approach of 26 developed countries was used to evaluate the simultaneous influence of the factors on TEA (2004–2011). Our findings show an inverse relationship between TEA and the initial capital effort; a direct relation between TEA, monetary freedom, investment freedom, financial market development and education; and a nonlinear concave relationship between TEA and the GDP per capita. The dynamic estimation approach shows a high speed of adjustment between the actual and desired rate of entrepreneurship. Overall, the main findings clarify which potential determinants have a real impact on entrepreneurial activity. Our contribution aims to help economic policymakers in developed countries to gain awareness of the main determinants of entrepreneurial activity at country level and thus to enable better decisions.

Keywords: total entrepreneurial activity (TEA); opportunity-driven entrepreneurship; necessity-driven entrepreneurship; determinants of entrepreneurship; panel data (search for similar items in EconPapers)
JEL-codes: C31 L26 M13 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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Working Paper: The Determinants of Entrepreneurship at the Country Level: A Panel Data Approach (2015)
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DOI: 10.1515/erj-2016-0060

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