Economic and political institutions and entry into formal and informal entrepreneurship
journal contributionposted on 02.11.2016, 12:06 by Erkko Autio, Kun FuKun Fu
We investigated the influence of economic and political institutions on the prevalence rate of formal and informal entrepreneurship across 18 countries in the Asia-Pacific region during the period 2001–2010. We found the quality of institutions to exercise a substantial influence on both formal and informal entrepreneurship. One standard-deviation increase in the quality of economic and political institutions could double the rates of formal entrepreneurship and halve the rates of informal entrepreneurship. The two types of institutions had a complementary effect on driving entry into formal entrepreneurship, whereas only direct effects were observed for informal entry.
This research was supported by the UK Entrepreneurship Research Centre.
- Loughborough University London