Where Should Governments Invest? The Impact of Economic, Political, Social and Technological Factors on the Formation of New Firms

22 Pages Posted: 19 Jul 2012

See all articles by Martha Garcia-Murillo

Martha Garcia-Murillo

Syracuse University - School of Information Studies

Patricia Vargas-Leon

Yale University - Yale Information Society Project; The Fletcher School, Tufts University

Jorge Vélez

affiliation not provided to SSRN

Date Written: July 18, 2012

Abstract

The purpose of this paper is to identify the factors that affect the creation of new firms. We take into consideration economic, political, social and technological factors which should also help governments realize the areas that we found to have the greatest impact.

The study relies on data from international organizations from which we construct an ordered probit statistical analysis. The results indicate that investments in both ICT and education enhance the probability of generating new business.

Keywords: New business, ICTs, governance, income, credit, education, trade

JEL Classification: L96, L98, M13, H54, H50, F10

Suggested Citation

Garcia-Murillo, Martha A. and Vargas-Leon, Patricia and Vélez, Jorge, Where Should Governments Invest? The Impact of Economic, Political, Social and Technological Factors on the Formation of New Firms (July 18, 2012). Available at SSRN: https://ssrn.com/abstract=2112043 or http://dx.doi.org/10.2139/ssrn.2112043

Martha A. Garcia-Murillo (Contact Author)

Syracuse University - School of Information Studies ( email )

220 Hinds Hall
Syracuse, NY 13244
United States
(315) 443-1829 (Phone)
(315) 443-5806 (Fax)

Patricia Vargas-Leon

Yale University - Yale Information Society Project

127 Wall Street
New Haven, CT 06511
United States

The Fletcher School, Tufts University ( email )

Medford, MA 02155
United States

Jorge Vélez

affiliation not provided to SSRN ( email )

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