National Business Regulations and City Entrepreneurship in Europe: A Multilevel Nested Analysis

David B. Audretsch, Maksim Belitski and Sameeksha Desai

Entrepreneurship Theory and Practice, 2019, vol. 43, issue 6, 1148-1165

Abstract: This article provides and tests a theoretical framework with a multilevel (country–city) nested model to analyze the relationship between national business regulations (NBRs) and city level entrepreneurship. While public interest theory predicts a positive relationship between NBR and city level entrepreneurship, public choice theory predicts the opposite, a negative relationship. Based on multilevel analysis for a matched country–city panel of 228 cities across 20 European countries for the years 2004 to 2009, the empirical evidence from panel data estimation explains how changes in NBRs influence changes in city level entrepreneurial activity over time.

Keywords: entrepreneurship; city; government policy; regulation; Europe; multilevel JEL: L26 M13 R10 O17 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (33)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:43:y:2019:i:6:p:1148-1165

DOI: 10.1177/1042258718774916

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