Which Institutions Encourage Entrepreneurs to Create Larger Firms?

41 Pages Posted: 21 Feb 2011  

Saul Estrin

London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Julia A. Korosteleva

University College London - School of Slavonic and East European Studies (SSEES) - Social Science Department

Tomasz Mickiewicz

Aston University - Aston Business School

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Abstract

We develop entrepreneurship and institutional theory to explain variation in different types of entrepreneurship across individuals and institutional contexts. Our framework generates hypotheses about the negative impact of higher levels of corruption, weaker property rights and especially intellectual property rights, and a larger state on entrepreneurs who plan to grow faster. We test these hypotheses using the Global Entrepreneurship Monitor surveys in 55 countries for 2001-2006, applying a multilevel estimation framework. We confirm our main hypotheses but we find no significant impact from intellectual property rights.

Keywords: entrepreneurship, institutions, corruption, property rights, government, Global Entrepreneurship Monitor

JEL Classification: L26, D23, D84, J24, P11

Suggested Citation

Estrin, Saul and Korosteleva, Julia A. and Mickiewicz, Tomasz, Which Institutions Encourage Entrepreneurs to Create Larger Firms?. IZA Discussion Paper No. 5481. Available at SSRN: https://ssrn.com/abstract=1765646

Saul Estrin (Contact Author)

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Julia A. Korosteleva

University College London - School of Slavonic and East European Studies (SSEES) - Social Science Department ( email )

Malet Street
London WC1E 7HU
United Kingdom

Tomasz Marek Mickiewicz

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

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