Economic and political institutions and entry into formal and informal entrepreneurship

Autio, Erkko; Fu, Kun

doi:10.1007/s10490-014-9381-0

Cited by 295 publications

(302 citation statements)

References 89 publications

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“…Another study of interest [29] analyzes the extent to which the quality of political and economic institutions affects the prevalence of formal and informal entrepreneurship in 18 countries in the Asia-Pacific region over the period [2001][2002][2003][2004][2005][2006][2007][2008][2009][2010]. The results of the study indicate that the quality of economic and political institutions is negatively correlated with entry into informal entrepreneurship and is positively associated with entry into formal entrepreneurship.…”

Section: Entrepreneurship Determinants: a Brief Literature Reviewmentioning

confidence: 99%

Entrepreneurial Activity in the EU: An Empirical Evaluation of Its Determinants

Rusu

Roman

2017

Sustainability

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Entrepreneurship plays a major role in national economies, being considered one of the main engines of economic growth, and an important contributor to creating new jobs and innovations. Identifying the main determinants of entrepreneurial activity is important for helping the decision makers in adopting adequate measures to support the creation and development of new businesses. The turbulent economic environment in recent years dominated by economic and financial crises, resulting in a reduction in economic growth but also in an increase in unemployment, has led decision makers to turn their attention again to the determinant factors of entrepreneurship. Starting from those stated above, through this paper we aim to investigate the impact of some macroeconomic, individual and business environment-related factors on the dynamics of entrepreneurial activity in 18 European Union (EU) countries for a period of 14 years (2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013)(2014)(2015). We use three regression models and we apply panel data fixed effect model approach. The results of our study highlight that inflation rate, foreign direct investments, access to finance and total tax rate are the main macroeconomic determinants of entrepreneurship. Also, we find that all individual business-related factors considered in the analysis have a significant impact on total entrepreneurship rate.

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Section: Entrepreneurship Determinants: a Brief Literature Reviewmentioning

confidence: 99%

Entrepreneurial Activity in the EU: An Empirical Evaluation of Its Determinants

Rusu

Roman

2017

Sustainability

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“…Fourth, future research is expected to incorporate the institution-based view more deeply, which could add the impact of the institutional context to the competitive dynamics between the DF and the MNE in transition economies (Autio & Fu, 2015;Gaur et al, 2014;Meyer et al, 2011;Peng, 2003). Micro-institutional changes in host countries may alter the institutional frameworks under which the MNE and the DF compete against each other.…”

Section: Limitations and Future Research Directionsmentioning

confidence: 99%

Competing in (and out of) transition economies

et al. 2015

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Transition economies have become a new frontier for multinational enterprises (MNEs). This has introduced a highly dynamic competitive environment for domestic firms operating with such less developed institutions, especially those facing the threat of MNEs with superior capabilities. Drawing on the awareness-motivation-capability framework from the competitive dynamics literature, this paper develops a three-round framework that explores the evolution of the dynamic capabilities of domestic and foreign firms and the related competitive dynamics between them in (and eventually out of) transition economies. While previous research tends to focus on MNEs or domestic firms within transition economies, ours is one of the first efforts that systematically model the competitive interaction between them with a longitudinal perspective.

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“…As argued by Autio and Fu (2015), economic and political institutional quality has a strong and meaningful relationship with the emergence and type of entrepreneurship. They claim that one standard deviation improvement in the quality of economic and political institutions could double formal entrepreneurship and reduce informal entrepreneurship by half.…”

Section: Transforming An Efficiency Economy Into An Innovation Econommentioning

confidence: 99%

“…As Autio and Fu (2015) argue, improved economic and political institutions boost formal entrepreneurship and reduce informal entrepreneurship tendencies. This implies that in well-structured economies, such as those in innovation-driven countries, the chance of obtaining subsistence entrepreneurship that relies on the informal sector is greatly limited.…”

Section: Entrepreneurship and Economic Developmentmentioning

confidence: 99%