Entrepreneurship, Institutions and Productivity Growth: A Puzzle

33 Pages Posted: 30 Oct 2017

See all articles by Zoltan J. Acs

Zoltan J. Acs

Schar School of Policy and Government

Saul Estrin

London School of Economics & Political Science (LSE); Centre for Economic Policy Research (CEPR); IZA Institute of Labor Economics

Tomasz Mickiewicz

Aston University - Aston Business School

László Szerb

University of Pécs

Date Written: October 28, 2017

Abstract

We explore empirically the relationship between economic growth, factor inputs, institutions, and entrepreneurship. In particular, we investigate whether entrepreneurship and institutions, either independently or in combination in an ecosystem, represent the “missing link” in explaining cross country differences in productivity. To do this, we introduce a new concept: namely National Entrepreneurial Ecosystem that is based on a methodology that combines institutions and human agency into an interdependent system of complementarities. We argue that entrepreneurship operating in particular institutional contexts, perhaps via the National Entrepreneurial Ecosystem, impacts efficiency which measures how effectively given technology and factors of production are actually used. We explore the empirical relevance of these ideas using data from a representative global survey and institutional sources for 46 counties over the period 2002-2011. We find support for the independent impact of institutions as well as for the role of the ecosystem in less developed economies.

Keywords: economic growth, entrepreneurship, ecosystem, efficiency, technology, Solow residual, GEM, GEDI

JEL Classification: L26, J24, P3, O33

Suggested Citation

Acs, Zoltan J. and Estrin, Saul and Mickiewicz, Tomasz Marek and Szerb, Laszlo, Entrepreneurship, Institutions and Productivity Growth: A Puzzle (October 28, 2017). Available at SSRN: https://ssrn.com/abstract=3060982 or http://dx.doi.org/10.2139/ssrn.3060982

Zoltan J. Acs

Schar School of Policy and Government ( email )

Founders Hall
3351 Fairfax Dr.
Arlington, VA 22201
United States
703-993-1780 (Phone)

HOME PAGE: http://home.ubalt.edu/zacs

Saul Estrin

London School of Economics & Political Science (LSE) ( email )

Houghton Street
London, WC2A 2AE
United Kingdom

Centre for Economic Policy Research (CEPR)

London
United Kingdom

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Tomasz Marek Mickiewicz (Contact Author)

Aston University - Aston Business School ( email )

Aston Triangle
Birmingham, B47ET
United Kingdom

Laszlo Szerb

University of Pécs ( email )

Rákóczi st. 80
Pécs, 7622
Hungary

HOME PAGE: http://ktk.pte.hu/en/department-quantitative-management/laszlo-szerb

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
70
Abstract Views
374
rank
344,714
PlumX Metrics