National Business Regulations and City Entrepreneurship in Europe: A Multilevel Nested Analysis

By David B. Audretsch, Maksim Belitski, S. Desai. Entrepreneurship: Theory & Practice, 2018

135 citations recorded by the source corpus.

This article provides and tests a theoretical framework with a multilevel (country–city) nested model to analyze the relationship between national business regulations (NBRs) and city level entrepreneurship. While public interest theory predicts a positive relationship between NBR and city level entrepreneurship, public choice theory predicts the opposite, a negative relationship. Based on multilevel analysis for a matched country–city panel of 228 cities across 20 European countries for the years 2004 to 2009, the empirical evidence from panel data estimation explains how changes in NBRs influence changes in city level entrepreneurial activity over time.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/6af81936283d43c434c580b6e59449019397b236