DRIVING FORCES BEHIND ENTREPRENEURSHIP: DIFFERENCES ON ENTREPRENEURSHIP RATE LEVEL AND ITS VOLATILITY ACROSS COUNTRIES

Abstract

This paper analyzes entrepreneurship volatility across a sample of countries participating in the Global Entrepreneurship Monitor (GEM) Project. Entrepreneurship volatility is modeled as a function of a set of institutional variables. Using longitudinal data on necessity-motivated entrepreneurship, we find significant differences in entrepreneurship volatility across lower-middle income countries. Our results suggest that government efficiency and entrepreneurship education and training contribute to reducing entrepreneurship volatility.

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