Economics at your fingertips  

The Influence of the Quality of Government Institutions on Entrepreneurial Motivation: Exploring the Variance across Countries

José Amorós Espinosa () and Pekka Stenholm ()
Additional contact information
Pekka Stenholm: TSE Entre, Turku School of Economics, University of Turku

No 1401, Working Papers from Departament Empresa, Universitat Autònoma de Barcelona

Abstract: Despite the increasing understanding of the relationships between institutions and entrepreneurship, the influence of the quality of government institutions on entrepreneurship is less addressed. This paper focuses on this critical eterminant of entrepreneurship in developing and developed ountries. Drawing from institutional theory we hypothesize and empirically assess the role of the quality of institutions in entrepreneurial activity. We examine how the quality of government institutions influences the rate of necessity-based entrepreneurial activity across countries and over time by using a cross-sectional time-series approach on data from the Global Entrepreneurship Monitor (GEM) database covering the years 2001–2011. Our results suggest that higher economic development associated with better quality of institutions reduces the prevalence of necessity-based entrepreneurship. Our findings imply that developing countries must rationally organize their functions, and seek to remove unnecessary barriers, decrease political instability, and controls that hamper entrepreneurial activity.

Keywords: Government Institutions; Quality; Regulation; Global Entrepreneurship Monitor; Entrepreneurial Motivation. (search for similar items in EconPapers)
JEL-codes: H11 L26 E02 O20 (search for similar items in EconPapers)
Date: 2013-12, Revised 2013-12
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in Working Papers at the Department of Business, February, pages 1-41

Downloads: (external link) Revised version, 2013 (application/pdf)

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:

Access Statistics for this paper

More papers in Working Papers from Departament Empresa, Universitat Autònoma de Barcelona
Bibliographic data for series maintained by Departament Empresa ().

Page updated 2019-03-17
Handle: RePEc:bbe:wpaper:1401