Institutions, Entrepreneurship, and Economic Growth: What Do We Know? And What Do We Still Need to Know?

50 Pages Posted: 13 Jan 2016

See all articles by Christian Bjørnskov

Christian Bjørnskov

Aarhus University - Department of Economics and Business; Research Institute of Industrial Economics (IFN); Center for Political Studies; Institute for Corruption Studies

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation

Date Written: January 01, 2016

Abstract

We review the literature that links institutions, entrepreneurship, and economic growth outcomes, focusing in particular on the empirics of the links between these. Most of this literature has an economics orientation, but we also review relevant literature from other social science and from management research. The review helps identify a number of conceptual, theoretical and empirical gaps, calling for further research. For example, the literature narrowly identifies entrepreneurship with start-ups and self-employment; does not theorize many potentially relevant inter-level links and mechanisms; and suffers from sample limitations, omitted variable biases, causality issues, and response heterogeneity. We argue that theories in management research, such as the resource-based view, transaction cost economics, and strategic entrepreneurship theory, can fill some of the conceptual and theoretical gaps.

Keywords: Entrepreneurship, judgment, the theory of the firm, institutional economics

JEL Classification: B53, D02, L26, O00, O40

Suggested Citation

Bjørnskov, Christian and Foss, Nicolai J., Institutions, Entrepreneurship, and Economic Growth: What Do We Know? And What Do We Still Need to Know? (January 01, 2016). Available at SSRN: https://ssrn.com/abstract=2714258 or http://dx.doi.org/10.2139/ssrn.2714258

Christian Bjørnskov (Contact Author)

Aarhus University - Department of Economics and Business ( email )

Fuglesangs Allé 4
Aarhus V, DK-8210
Denmark

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Center for Political Studies

Landgreven 3
Copenhagen K, DK-1301
Denmark

Institute for Corruption Studies

Stevenson Hall 425
Normal, IL 61790-4200
United States

Nicolai J. Foss

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

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