De jure determinants of new firm formation: how the pillars of constitutions influence entrepreneurship
Emanuela Carbonara (),
Enrico Santarelli () and
Hien Thu Tran ()
Additional contact information
Emanuela Carbonara: University of Bologna
Hien Thu Tran: Edge Hill University
Small Business Economics, 2016, vol. 47, issue 1, 139-162
Abstract This paper provides empirical evidence supporting the view that constitutions are the primary and fundamental institutional determinant of entrepreneurship. It shows that some of the provisions contained in national constitutions are positively and significantly associated with a standard measure of entrepreneurial dynamics, namely the rate of new business density. Using for 115 countries a novel dataset containing the characteristics of the constitutions enacted in the world, applying an IV-GMM treatment to deal with the endogeneity of constitutional rules, and controlling for de facto variables, the paper finds that provisions about the right to conduct/establish a business, the right to strike, consumer protection, anti-corruption, and compulsory education promote higher rates of new firm formation. Contrasting results are instead obtained for provisions concerning protection of intellectual property rights.
Keywords: Constitutional rules; Entrepreneurship; New firm formation; Economic effects of constitutions; D72; K10; H10; L26; M13; O50; P48 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11187-016-9715-z Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: De Jure Determinants of New Firm Formation: How the Pillars of Constitutions Influence Entrepreneurship (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:47:y:2016:i:1:d:10.1007_s11187-016-9715-z
Ordering information: This journal article can be ordered from
http://www.springer. ... 29/journal/11187/PS2
Access Statistics for this article
Small Business Economics is currently edited by Zoltan J. Acs and David B. Audretsch
More articles in Small Business Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().