Regulations and Entrepreneurship: Evidence from Developed and Developing Countries

Claudia Alvarez, José Amorós and David Urbano ()

No 2, Past Working Papers from Universidad del Desarrollo, School of Business and Economics

Abstract: This paper uses an institutional approach to examine the effect of regulations on entrepreneurial activity, comparing developed and developing countries. Through an unbalanced panel data set of 49 countries over the period 2001-2010 and using a combination of international databases we find a positive influence of government spending and entrepreneurship legislation on entrepreneurial activity. It was also found that regulations may have different impacts on entrepreneurship according to the country’s economic development. Thus, in developed economies unemployment legislation is positively related to entrepreneurship, while this relationship is negative in other cases. This paper offers new insights both from a conceptual perspective (advancing theory concerning the factors that influence entrepreneurial activity) and a practical viewpoint (for the design of government policies to foster entrepreneurship).

Keywords: Entrepreneurship; entrepreneurial activity; regulations; institutional economics; developed and developing economies; GEM. (search for similar items in EconPapers)
JEL-codes: D02 E02 L26 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2014-11, Revised 2014-11
New Economics Papers: this item is included in nep-cse, nep-ent and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published in INNOVAR, Volumen 24, November 2014, pages 81-89

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Persistent link: https://EconPapers.repec.org/RePEc:dsr:pastwp:02

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