Determinants of Entrepreneurs' Activities: New Evidence from Cross-Country Data

Doaa Salman
Authors registered in the RePEc Author Service: Doaa M. Salman Abdou

Chapter 8 in Foreign Direct Investment and Small and Medium Enterprises:Productivity and Access to Finance, 2015, pp 145-160 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This chapter provides an empirical investigation of the main determinants of entrepreneurial activities across three groups of countries over the period 2004–2008, by specifically examining the importance of institutional setting and economic growth on entrepreneurial activities. The classification of countries is based on the Economic Freedom Index and the World Economic Forum (2011) which groups them on the basis of whether they are innovation-driven, efficiencydriven, or factor-driven countries. On the one hand, empirical results find a positive and significant role for economic freedom to accelerate entrepreneurial activities and growth in innovation and efficiency-driven countries characterized by strong institutional systems. On the other hand, the results suggest that in factor-driven countries characterized by relatively less economic freedom and weak institutions, there is a significant negative relationship between economic freedom and entrepreneurial activities.

Keywords: Foreign Direct Investment; The Spillover Effects; Small and Medium Enterprises; Regional Innovation; Entrepreneurial Activities; Trade and Investment; Bank Lending; Labor Productivity (search for similar items in EconPapers)
Date: 2015
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Journal Article: Determinants of Entrepreneurs' Activities: New Evidence from Cross-Country Data (2014)
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