Entrepreneurial Activity and Institutions. The Impact of Rule of Law and Control of Corruption.

24 Pages Posted: 19 Jul 2017

See all articles by Gegam Shagbazian

Gegam Shagbazian

National Research University Higher School of Economics

Andrey Aistov

National Research University Higher School of Economics

Date Written: July 11, 2017

Abstract

The work is devoted to the analysis of entrepreneurial activities. The main purpose of paper is to better understand the institutional impact on entrepreneurship and business survival. Were used data from GEM (Global Entrepreneurship Monitor) for 98 countries throughout 1999-2016 as dependent variables such as total entrepreneurial activity (TEA), established business ownership (EBO), and early-stage business survival rate (EBO/TEA). As explanatory variables characterizing institutional environment we used the rule of law and control of corruption. The results show positive relationships between rule of law and early-stage business survival, and between control of corruption and early-stage business survival rate. Also the rule of law positively influence on level EBO. However, there was no evidence that rule of law and control of corruption are important for the total entrepreneurial activity.

Keywords: entrepreneurship, business survival, institutions, rule of law, control of corruption, GEM

JEL Classification: L26

Suggested Citation

Shagbazian, Gegam and Aistov, Andrey, Entrepreneurial Activity and Institutions. The Impact of Rule of Law and Control of Corruption. (July 11, 2017). Available at SSRN: https://ssrn.com/abstract=3000427 or http://dx.doi.org/10.2139/ssrn.3000427

Gegam Shagbazian (Contact Author)

National Research University Higher School of Economics ( email )

25/12, Bolshaya pecherskaya street
136, Rodionova street
Nizhniy Novgorod, 603155
Russia

Andrey Aistov

National Research University Higher School of Economics ( email )

25/12 Bolshaja Pecherskaja Ulitsa
Nizhny Novgorod, 603155
Russia

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