Influence of genetic factors and institutional environment on entrepreneurial activity: evidence from a twin study in Italy

Diego Zunino
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Diego Zunino: SKEMA Business School - SKEMA Business School, GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur

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Abstract: Abstract Genetic factors influence entrepreneurial activity, but we know little about how genetic factors influence entrepreneurial activity when the institutional environment is favorable. Two theories from behavioral genetics explain the gene–environment interaction. One theory argues that a favorable environment favors the development of genetic factors and their influence. An alternative theory posits that unfavorable environment triggers the development of genetic factors and their influence. I test these two competing theories with a twin study based in Italy. I compare the influence of genetic factors in provinces where the institutional environment favors entrepreneurial activity with provinces where the institutional environment is unfavorable to entrepreneurial activity. I found consistent evidence that genetic factors exert a larger influence in favorable institutional environments, suggesting that favorable institutional environments complement genetic factors.

Date: 2022-06-01
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Published in Industrial and Corporate Change, 2022, 31 (3), pp.681-714. ⟨10.1093/icc/dtab055⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03895736

DOI: 10.1093/icc/dtab055

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