EconPapers    
Economics at your fingertips  
 

Entrepreneurial Entry: Which Institutions Matter?

Ruta Aidis (), Saul Estrin () and Tomasz Mickiewicz
Additional contact information
Saul Estrin: London School of Economics

No 4123, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In this paper we explore the relationship between the individual decision to become an entrepreneur and the institutional context. We pinpoint the critical roles of property rights and the size of the state sector for entrepreneurial activity and test the relationships empirically by combining country-level institutional indicators for 44 countries with working age population survey data taken from the Global Enterprise Monitor. A methodological contribution is the use of factor analysis to reduce the statistical problems with the array of highly collinear institutional indicators. We find that the key institutional features that enhance entrepreneurial activity are indeed the rule of law and limits to the state sector. However, these results are sensitive to the level of development.

Keywords: entrepreneurship; property rights; access to finance (search for similar items in EconPapers)
JEL-codes: L26 P14 P37 P51 (search for similar items in EconPapers)
Pages: 46 pages
Date: 2009-04
New Economics Papers: this item is included in nep-ent, nep-soc and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed

Published in: Grzegorz Kolodko and Jacek Tomkiewicz (eds.), 20 Years of Transformation: Achievements, Problems and Perspectives, New York: Nova, 2011

Downloads: (external link)
http://ftp.iza.org/dp4123.pdf (application/pdf)

Related works:
Working Paper: Entrepreneurial Entry: Which Institutions Matter? (2009) Downloads
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: https://EconPapers.repec.org/RePEc:iza:izadps:dp4123

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().

 
Page updated 2021-06-18
Handle: RePEc:iza:izadps:dp4123