EconPapers    
Economics at your fingertips  
 

Size Matters: Entrepreneurship and Institutions

Ioana Petrescu ()
Additional contact information
Ioana Petrescu: University of Maryland

Management Dynamics in the Knowledge Economy Journal, 2016, vol. 4, issue 1, 63-80

Abstract: Encouraging the growth of firms is a priority for many governments, so identifying the factors that keep firms small is extremely important for public policy. One of these factors might be the poor quality of institutions. In this paper, I test whether institutions such as corruption, law and order, regulations, bureaucracy, investment friendliness of the government and property rights affect the number micro, small and medium firms and their rate of growth. This paper uses data on micro, small, and medium enterprises (MSME's) from the International Finance Corporation and firm growth data from the World Bank's Enterprise Surveys. It shows that better institutions increase the number of medium firms and encourage their growth, but do not have an effect on the number or growth of micro, small or large firms. These results suggest that changes in public policies are needed to improve institutions and foster the survival and growth of medium firms.

Keywords: firms; firm size; firm growth; institutions. (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.managementdynamics.ro/index.php/journal/article/download/168/113 (application/pdf)
http://www.managementdynamics.ro/index.php/journal/article/view/168/113 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nup:jrmdke:v:4:y:2016:i:1:p:63-80

Access Statistics for this article

Management Dynamics in the Knowledge Economy Journal is currently edited by Contantin BRATIANU, Florina PINZARU and Alexandra ZBUCHEA

More articles in Management Dynamics in the Knowledge Economy Journal from College of Management, National University of Political Studies and Public Administration Contact information at EDIRC.
Series data maintained by Cristian-Mihai VIDU ().

 
Page updated 2017-09-29
Handle: RePEc:nup:jrmdke:v:4:y:2016:i:1:p:63-80