Regulations and Entrepreneurship: Evidence from Developed and Developing Countries

Innovar, 24, 81-89

10 Pages Posted: 22 Apr 2017 Last revised: 26 Oct 2017

See all articles by Claudia Alvarez

Claudia Alvarez

Universidad EAFIT; Autonomous University of Barcelona

Jose Ernesto Ernesto Amorós

Universidad del Desarrollo - School of Business and Economics; EGADE

David Urbano

Autonomous University of Barcelona

Date Written: 2014

Abstract

This paper uses an institutional approach to examine the effect of regulations on entrepreneurial activity, comparing developed and developing countries. Through an unbalanced panel data set of 49 countries over the period 2001-2010 and using a combination of international databases we find a positive influence of government spending and entrepreneurship legislation on entrepreneurial activity. It was also found that regulations may have different impacts on entrepreneurship according to the country's economic development. Thus, in developed economies unemployment legislation is positively related to entrepreneurship, while this relationship is negative in other cases. This paper offers new insights both from a conceptual perspective (advancing theory concerning the factors that influence entrepreneurial activity) and a practical viewpoint (for the design of government policies to foster entrepreneurship).

Keywords: entrepreneurship, entrepreneurial activity, regulations, institutional economics, developed and developing economies, GEM

Suggested Citation

Alvarez, Claudia and Amorós, Jose Ernesto Ernesto and Urbano, David, Regulations and Entrepreneurship: Evidence from Developed and Developing Countries (2014). Innovar, 24, 81-89. Available at SSRN: https://ssrn.com/abstract=2956472

Claudia Alvarez (Contact Author)

Universidad EAFIT ( email )

Carrera 49 N° 7 sur – 50
Medellín, Antioquia 00000
Colombia

Autonomous University of Barcelona ( email )

Bellaterra, Barcelona 08193
Spain

Jose Ernesto Ernesto Amorós

Universidad del Desarrollo - School of Business and Economics ( email )

School of Business
Ainavillo 456
Concepcion
Chile

EGADE

A. Carlos Lazo 100
Col. Santa Fe. Delegación Álvaro Obregón
Mexico City, 01389
Mexico

HOME PAGE: http://egade.mx

David Urbano

Autonomous University of Barcelona ( email )

Edifici B, Campus UAB
Bellaterra, Barcelona 08193
Spain
34935811209 (Phone)

HOME PAGE: http://www.davidurbano.eu

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