THE IMPACT OF MACRO FACTORS ON ENTREPRENEURSHIP AT THE PROVINCIAL LEVEL IN A DEVELOPING COUNTRY

Huu-Duc Bui (), Manh-Chiãšn Vu, THANH-TÚ Phan () and Minh-Huan Luong ()
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Huu-Duc Bui: Thuongmai University, 79 Ho Tung Mau, Hanoi, 11300, Vietnam
Manh-Chiãšn Vu: Thuongmai University, 79 Ho Tung Mau, Hanoi, 11300, Vietnam2Université du Québec en Outaouais, 283 Alexandre-Taché Blvd, Gatineau, Québec J8X 3X7, Canada
THANH-TÚ Phan: Thuongmai University, 79 Ho Tung Mau, Hanoi, 11300, Vietnam
Minh-Huan Luong: Vietnam Chamber of Commerce and Industry (VCCI), Enterprise Development Institute, 9 Dao Duy Anh, Hanoi, 11300, Vietnam

Journal of Developmental Entrepreneurship (JDE), 2025, vol. 30, issue 01, 1-32

Abstract: This study analyzes the effect of macroeconomic, social and institutional factors on provincial entrepreneurship, defined as the aggregate number of newly created enterprises per year in a province within a country. Using a robust fixed-effects regression model with data from 63 provinces in Vietnam between 2014 and 2021, the findings reveal that the GDP growth, trained labor force, reduced time costs for regulatory compliance, lower informal charges and enhanced business support services positively influence provincial entrepreneurship. Conversely, economic openness and poverty rates negatively affect entrepreneurship in the provinces. Therefore, we can confirm the effect of some key macro factors on provincial entrepreneurship, implying that the aggregate entrepreneurship rate varies among provinces in a developing country because of differences in their macro factors. Our study contributes to the literature on provincial entrepreneurship and its macro determinants, providing practical implications for policymakers aiming to foster entrepreneurial activities across their provinces in contexts like Vietnam.

Keywords: Entrepreneurship; provincial entrepreneurship; macro factors; cross-province analysis; developing country (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S1084946725500037

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