Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence

By Sebastian Aparicio, David Urbano, David B. Audretsch. 2016

621 citations recorded by the source corpus.

This paper explores the institutional factors that encourage opportunity entrepreneurship in order to achieve higher rates of economic growth. We suggest that institutions may not have an automatic effect, as is typically assumed in growth models. Rather, a mechanism is required to serve as a conduit into the society for those institutional factors that affect productive behavior such as entrepreneurial activity. Thus, opportunity entrepreneurship is identified as one such mechanism that impacts on economic growth. Using a three-stage least-square method through unbalanced panel data with 43 countries (2004–2012), we find that informal institutions have a higher impact on opportunity entrepreneurship than formal institutions. Variables such as control of corruption, confidence in one's skills and private coverage to obtain credit promote a positive effect of opportunity entrepreneurship on economic growth in all the countries of our sample, and especially in Latin American countries as a homogeneous group. These results suggest additional elements to the theoretical discussion in terms of the importance of institutions as framework to understand determinants and effects of opportunity entrepreneurship. Regarding policy implications, the results also suggest that it could be possible to obtain economic growth encouraging the appropriate institutions in order to increase the entrepreneurship by opportunity.

Subfields: Business and International Management, Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/b5c186087cd245c40defc003027ae3ff67c38f10

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Business and International Management

In Economics and Econometrics

In Management of Technology and Innovation

Citations in the corpus

Institutions and Entrepreneurship Quality (2018, background): “Formal and informal institutions interact together and the impact of formal institutions can be influenced by the informal institutions (North, 2006; Smallbone & Welter, 2012, North, 1997, 1990; Aparicio et al., 2016).”
The impact of entrepreneurship on economic, social and environmental welfare and its determinants: a systematic review (2020, background): “2015; Hessels and van Stel 2011; Urbano and Aparicio 2016; Valliere and Peterson 2009; van Stel et al.”
Does entrepreneurial activity matter for economic growth in developing countries? The role of the institutional environment (2019, background): “…activity, TEA) and necessity TEA, which have been reliable measures in exploring the relationship between entrepreneurship and economic growth (Acs et al. 2008; Liñán and Fernandez-Serrano 2014; Urbano and Aparicio 2016; van Stel et al. 2005; Wennekers et al. 2005; Wong et al. 2005, among others).”
Twenty-five years of research on institutions, entrepreneurship, and economic growth: what has been learned? (2019, background): “Through this insight, we understand institutions as precedents of entrepreneurship, which is related to the proportion of small businesses in a country and their dynamism, economic performance, and economic activity (Aparicio et al. 2016a; Audretsch et al. 2008; Sobel 2008).”
Effects of Schumpeterian and Kirznerian entrepreneurship on economic growth: panel data evidence (2017, background): “…international monetary Fund sundqvist, Kyläheiko, and Cadogan (2012) net goods exports (nEt_EXp) millions of current us$ international monetary Fund aparicio, urbano, and audretsch (2016) gross capital formation (gCF) millions of constant 2005 us$ organisation for Economic Co-operation and…”
The entrepreneurial university as driver for economic growth and social change - Key strategic challenges (2019, background): “Entrepreneurial skills of individuals may possibly be increasingly indispensable for navigating such environments (Aparicio et al. 2016) along with adaptability and flexibility, strong leadership, and an environment conducive to entrepreneurial processes (Gibb and”
Social Entrepreneurial Intention and the Impact of COVID-19 Pandemic: A Structural Model (2020, background): “In this sense, it would be interesting to develop educational actions that promote, especially among university students, the ability to identify entrepreneurial opportunities in the social field, even in times of economic crisis, taking into account that entrepreneurship by opportunity generates a ”
Institutions, entrepreneurship, and economic growth in Europe (2018, methodology): “Therefore, we proceed, in the spirit of Aparicio et al. (2016) but aligning closely with the Islam (1995) model, to develop a system of two equations where entrepreneurial activity moderates the impact of a particular set of institutions (notably those that are expected to”