Which Institutions Encourage Entrepreneurs to Create Larger Firms?
London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); Institute for the Study of Labor (IZA)
Julia A. Korosteleva
University College London - School of Slavonic and East European Studies (SSEES) - Social Science Department
Aston University - Aston Business School
IZA Discussion Paper No. 5481
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.
Number of Pages in PDF File: 41
Keywords: entrepreneurship, institutions, corruption, property rights, government, Global Entrepreneurship Monitor
JEL Classification: L26, D23, D84, J24, P11
Date posted: February 21, 2011