Institutions, entrepreneurship, and economic growth in Europe
By N. Bosma, J. Content, M. Sanders, E. Stam. Small Business Economics, 2018
424 citations recorded by the source corpus.
Institutions have a decisive impact on the prevalence and nature of entrepreneurship. To date, the impact of institutions on (productive) entrepreneurship and the effects of entrepreneurship on economic growth have largely been investigated in isolation. In this paper, we bring together institutions, entrepreneurship, and economic growth using a parsimonious growth model in a 3SLS specification. In our first stage, we regress multiple measures of entrepreneurial activity on institutional proxies that are known to correlate with more productive forms of entrepreneurial activity. Using the fitted values of this first-stage regression as our proxy for productive entrepreneurship, we can then estimate a panel growth regression following Islam (1995) in a second stage. The third stage then optimizes the estimation of the two equations simultaneously. Our results show that productive entrepreneurship contributes to economic growth. In our set of proxies for institutional quality, financial stability, small government, and perceived start-up skills are the most important predictors of such productive entrepreneurship.
Subfields: Economics and Econometrics, Management of Technology and Innovation
View Paper: https://www.semanticscholar.org/paper/cafb5f4fabd616ec56a1e8754b7f7291a5b3255c
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In Economics and Econometrics
In Management of Technology and Innovation
- V. Rusu
- K M Baharul Islam
- Syed Abid Hussain
- Aamir Hassan
- Imran Saleem
- I. Anwar
- Ovidiu Stoica
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Citations in the corpus
- Individual entrepreneurial orientation, entrepreneurship education and entrepreneurial intention: The mediating role of entrepreneurial motivations (2021, background): “Entrepreneurs, as economic agents, have an important influence in the revival of an economy by promoting economic, technological, social and organizational development (Ács et al., 2014; Bosma et al., 2018).”
- Business risk management in the context of small and medium-sized enterprises (2020, background): “Difficulties in business financing and lack of funds are the most common symptoms of SME financial risk (Bosma et al., 2018) because most of the operation of the company is financed by the capital of owners or managers themselves.”
- The Nexus between Entrepreneurship and Economic Growth: A Comparative Analysis on Groups of Countries (2020, background): “Our findings are consistent with the ones of previous studies [4,6,9,11,12,16,17,19,20,23,50,51], which also found a positive relation between TEA and economic growth.”