Entrepreneurship Determinants in Central and Eastern Europe. The Case of Romania

Ionela Dumitru () and Ionut Dumitru ()
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Ionela Dumitru: The Faculty of Business Administration

ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, 2017, vol. 51, issue 1, 187-203

Abstract: Romania’s level of entrepreneurship was in recent years one of the lowest among Central and Eastern Europe (CEE) and Baltic countries, only higher than in Hungary and Bulgaria. Based on panel data regressions, our estimations show that there are institutional factors which explain why Romania is underperforming. The successful transition economies such as Slovakia, Czech Republic and Poland seem to have almost all the necessary ingredients that are positive for entrepreneurship - regulatory quality, government effectiveness, political stability, control of corruption, voice and accountability, rule of law, and labor market flexibility. The most effective way to increase Romania’s entrepreneurship level will be to improve the weaknesses we identified at the institutional level, as institutional variables are the most significant drivers for entrepreneurship based on our results, and at the same time, their week values seems to be the main explanation why Romania has a low entrepreneurial level.

Keywords: Entrepreneurship; Business Environment; Institutions; Regulatory quality; Rule of Law. (search for similar items in EconPapers)
JEL-codes: E02 G38 K20 L26 L51 M13 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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