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The Vietnamese entrepreneurship paradox: how can entrepreneurs thrive without political and economic freedom?

David B. Audretsch () and Antje Fiedler ()
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David B. Audretsch: Indiana University
Antje Fiedler: University of Auckland

The Journal of Technology Transfer, 2022, vol. 47, issue 4, No 9, 1179-1197

Abstract: Abstract Entrepreneurship and democracy are often considered complementary, but recent evidence points to a paradox that entrepreneurial activities have increased in undemocratic contexts. Exploring economic and political freedoms, this paper investigates the development of entrepreneurship in Vietnam, an economy characterised by low economic and very low political freedoms. It suggests changes in economic freedom over time influence opportunity perceptions and activities more than absolute levels. We identify key aspects of how culture and institutions have changed, which have been conducive to entrepreneurship. Overall, we show how even small increases in economic freedom stimulate entrepreneurship, even in the absence of political freedom.

Keywords: Economic freedom; Political freedom; Democracy; Entrepreneurship; Vietnam (search for similar items in EconPapers)
JEL-codes: M13 O43 P00 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10961-021-09873-2

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