Economic and political institutions and entry into formal and informal entrepreneurship

Erkko Autio () and Kun Fu ()

Asia Pacific Journal of Management, 2015, vol. 32, issue 1, 67-94

Abstract: We investigated the influence of economic and political institutions on the prevalence rate of formal and informal entrepreneurship across 18 countries in the Asia-Pacific region during the period 2001–2010. We found the quality of institutions to exercise a substantial influence on both formal and informal entrepreneurship. One standard-deviation increase in the quality of economic and political institutions could double the rates of formal entrepreneurship and halve the rates of informal entrepreneurship. The two types of institutions had a complementary effect on driving entry into formal entrepreneurship, whereas only direct effects were observed for informal entry. Copyright Springer Science+Business Media New York 2015

Keywords: Informal entrepreneurship; Economic and political institutions; Formal entrepreneurship; Poverty; Economic development (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (127)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:asiapa:v:32:y:2015:i:1:p:67-94

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DOI: 10.1007/s10490-014-9381-0

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