The impact of institutions on entrepreneurial activity

Frank H. Stephen · David Urbano · Esteban van Hemmen Almazor

106 citations0/0 files storedManagerial and Decision Economics

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Entrepreneurship Studies and Influences Economic Theory and Institutions Culture, Economy, and Development Studies

Abstract

Abstract This paper presents an empirical analysis of the factors which promote entrepreneurial activity across a number of transition, developing and developed countries. It produces results which highlight the importance of institutions in promoting entrepreneurial activity. This work is part of an on‐going research project on the relationship between the legal system and factors which influence economic development. In particular, it has been shown that legal rules protecting creditors and investors influence the size of financial markets which in turn influence economic development. Our paper thus extends the analysis of the impact of institutions beyond that previously established to demonstrate its influence on another driver of economic development. Copyright © 2005 John Wiley & Sons, Ltd.

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References

1990Institutions, Institutional Change and Economic Performance 1991Institutions, Institutional Change and Economic Performance 1998Law and Finance 1999Corporate Ownership Around the World 1997Legal Determinants of External Finance 2000Investor protection and corporate governance 1999The quality of government 2000Financial intermediation and growth: Causality and causes

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