Year: 2007
Type: article
Abstract: While much attention has been devoted to analyzing how the institutional framework and entrepreneurship impact growth, how economic policy and institutional design affect entrepreneurship appears to be much less analyzed. We try to explain cross-country differences in the level of entrepreneurship by differences in economic policy and institutional design. Specifically, we use the Economic Freedom Index from the Fraser Institute to ask which elements of economic policy making and the institutional framework are conducive to the supply of entrepreneurship, measured by data on entrepreneurship from the Global Entrepreneurship Monitor. We find that the size of government is negatively correlated and sound money is positively correlated with entrepreneurial activity. Other measures of economic freedom are not significantly correlated with entrepreneurship.
Source: Public Choice
Authors: Christian Bjørnskov, Nicolai J. Foss
Institutions: Aarhus University, Copenhagen Business School
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
Funder: World Bank Group
OpenAlex ID: W2152349617