EconPapers    
Economics at your fingertips  
 

Size Matters: Entrepreneurial Entry and Government

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

No 5052, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We explore the country-specific institutional characteristics likely to influence an individual's decision to become an entrepreneur. We focus on the size of the government, on freedom from corruption, and on 'market freedom' defined as a cluster of variables related to protection of property rights and regulation. We test these relationships by combining country-level institutional indicators for 47 countries with working age population survey data taken from the Global Entrepreneurship Monitor. Our results indicate that entrepreneurial entry is inversely related to the size of the government, and more weakly to the extent of corruption. A cluster of institutional indicators representing 'market freedom' is only significant in some specifications. Freedom from corruption is significantly related to entrepreneurial entry, especially when the richest countries are removed from the sample but unlike the size of government, the results on corruption are not confirmed by country-level fixed effects models.

Keywords: market freedom; government; entrepreneurship; corruption (search for similar items in EconPapers)
JEL-codes: L26 P14 P37 P51 (search for similar items in EconPapers)
Pages: 59 pages
Date: 2010-07
New Economics Papers: this item is included in nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17) Track citations by RSS feed

Published in: Small Business Economics, 2012, 39 (1), 119-139

Downloads: (external link)
http://ftp.iza.org/dp5052.pdf (application/pdf)

Related works:
Journal Article: Size matters: entrepreneurial entry and government (2012) 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:dp5052

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:dp5052