21 Pages Posted: 27 Aug 2008
Using institutional theory, the Heritage Foundation/Wall Street Journal 2003 Index of Economic Freedom, and the 2002 Global Entrepreneurship Monitor, we regress opportunity-motivated entrepreneurial activity (OME) and necessity-motivated entrepreneurial activity (NME) on 10 factors of economic freedom and gross domestic product (GDP) per capita for 37 nations. We find that both OME and NME are negatively associated with GDP per capita and positively associated with labor freedom, but that various other factors of economic freedom are uniquely related to either OME or NME. Specifically, we find that OME, but not NME, is positively associated with property rights, while NME, but not OME, is positively associated with fiscal freedom and monetary freedom. Thus, governmental restrictions of economic freedom appear to impact entrepreneurial activity differently depending on the particular freedom restricted by government and the entrepreneur's motive for engaging in entrepreneurial action.
Suggested Citation: Suggested Citation
McMullen, Jeffery S. and Bagby, D. Ray and Palich, Leslie E., Economic Freedom and the Motivation to Engage in Entrepreneurial Action. Entrepreneurship Theory and Practice, Vol. 32, Issue 5, pp. 875-895, September 2008. Available at SSRN: https://ssrn.com/abstract=1248407 or http://dx.doi.org/10.1111/j.1540-6520.2008.00260.x
This is a Wiley-Blackwell Publishing paper. Wiley-Blackwell Publishing charges $38.00 .
File name: etap.
If you wish to purchase the right to make copies of this paper for distribution to others, please select the quantity.