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on Entrepreneurship |
| By: | Lindner, Ines; Strulik, Holger |
| Abstract: | This paper introduces the Small World model (Watts and Strogatz, Nature, 1998) into the theory of economic growth and investigates how increasing economic integration affects firm size and effciency, norm enforcement, and aggregate economic performance. When economic integration is low and local connectivity is high, informal norms control entrepreneurial behavior and more integration mainly improves search for effcient investment opportunities. At a higher level of economic integration neighborhood enforcement deteriorates and formal institutions are needed to keep entrepreneurs in check. A gradual take-off to perpetual growth is explained by a feedback effect from investment to the formation of long-distance links and the diffusion of knowledge. If formal institutions are weak, however, the economy does not take off but stagnates at an intermediate income level. Structurally, the equilibrium of stagnation differs from balanced growth by the presence of relatively many small firms of low productivity. |
| Keywords: | modernization, economic integration, firm size, norms, networks, knowledge spillovers, growth |
| JEL: | O10 O40 L10 L14 Z13 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:han:dpaper:dp-478&r=ent |
| By: | Guilherme Lichand (Harvard University); Rodrigo R. Soares (Department of Economics PUC-Rio) |
| Abstract: | Entrepreneurship is usually indentified as an important determinant of aggregate productivity and long-term growth. The determinants of entrepreneurship, nevertheless, are not entirely understood. A recent literature has linked entrepreneurship to the development of the justice system. This paper contributes to this literature by evaluating the role of access to justice in determining the incidence of entrepreneurship. We explore the creation of Special Civil Tribunals in the Brazilian state of São Paulo during the 1990s. Special Civil Tribunals increased the geographic presence of the justice system, simplified judicial procedures, and increased the speed of adjudication of disputes. Using census data, and difference-in-differences and instrumental variable strategies, we find that implementation of Special Civil Tribunals led to increased entrepreneurship, defined as the probability that individuals are employers or selfemployed. Results are particularly strong and robust for the case of self-employment, and do not seem to be related to other changes in infrastructure or public good provision at the local level, or to pre-existing trends in entrepreneurship. |
| Keywords: | access to justice, courts, entrepreneurship, institutions, Brazil Jel Codes: K1, K41, K42, H41, O12, O17, O54 |
| Date: | 2011–08 |
| URL: | http://d.repec.org/n?u=RePEc:rio:texdis:591&r=ent |
| By: | Marcus Dejardin |
| Abstract: | In this chapter, we propose a primer of the treatment that has received in the economic literature the problematic of entrepreneurship and rent-seeking behavior. It comprises the introduction of employed concepts, the discussion of the allocation of entrepreneurs between different types of economic projects, namely between innovative entrepreneurship and rent-seeking, as well as the explicative factors of the allocation. Interactions between entrepreneurship, rent-seeking and growth are considered (also for a reference situation departing from the first best). Some policy implications are finally briefly evoked. |
| Keywords: | Entrepreneurship; Rent-seeking; Economic development |
| JEL: | L26 D70 O10 O40 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:nam:wpaper:1112&r=ent |
| By: | Romain Bouis; Romain Duval; Fabrice Murtin |
| Abstract: | This paper analyses the policy and institutional determinants of long-run economic growth for a sample of OECD and non-OECD countries, with two objectives. First, it assesses the extent to which the main findings from growth regressions covering industrial countries are robust to a larger sample covering lower-income OECD and non-OECD countries. Confirmation is found from pooled mean group estimates for the larger sample of countries that long-run GDP per capita levels are increased inter alia by education policies, trade openness, R&D expenditures and policy frameworks that are conducive to low inflation, although the estimated effect of education is implausibly large. Second, the paper proposes a new growth regression framework that explicitly models technology diffusion and allows exploring the growth effects of a wider set of policies and institutions, while alleviating some of the constraints of the pooled mean group estimator. Under this approach, the estimated return to education is more in line with available evidence from microeconomic studies. Regulatory barriers to entrepreneurship, explicit barriers to trade and – especially – patent rights protection appear to be fairly robust determinants of long-run cross-country differences in technology. Some other policies and institutions such as trade liberalisation are found to speed up technology convergence. There is limited evidence here that the effects of policies and institutions vary depending on countries’ level of development. These findings are subject to the usual limitations of growth regression analysis.<P>Les déterminants politiques et institutionnels de la croissance économique au sein des économies OCDE et non OCDE : nouveaux résultats à partir d'équations de croissance<BR>Cet article analyse les déterminants politiques et institutionnels de la croissance économique de long terme pour un échantillon de pays membres et non membres de l’OCDE avec deux objectifs. Premièrement, il évalue dans quelle mesure les principaux résultats de régressions couvrant des pays industrialisés sont robustes à un échantillon plus large couvrant les pays de l’OCDE à bas revenus et des pays non membres. Les résultats d’estimations en pooled mean group sur l’échantillon élargi de pays confirment que la croissance de long terme du PIB par tête augmente notamment avec les politiques d’éducation, l’ouverture aux échanges commerciaux, les dépenses en R-D et les structures politiques associées à un faible niveau d’inflation, bien que l’estimation élevée de l’effet de l’éducation soit peu plausible. Deuxièmement, le papier propose un nouveau cadre de régressions de croissance qui modélise de façon explicite la diffusion technologique et permet d’explorer les effets sur la croissance d’un ensemble plus vaste de politiques et d’institutions, tout en allégeant certaines des contraintes de l’estimateur pooled mean group. Sous cette approche, le rendement estimé de l’éducation est davantage en accord avec les estimations provenant d’études microéconomiques. Les barrières réglementaires à l’entreprenariat, les barrières explicites aux échanges commerciaux et surtout, la protection des droits sur les brevets apparaissent comme des déterminants assez robustes des différences technologiques de long terme entre pays. D’autres politiques et institutions, telles que la libéralisation des échanges commerciaux, accélèrent la convergence technologique. Il existe une évidence limitée en faveur d’effets différents des politiques et des institutions suivant le niveau de développement des pays. Ces résultats sont soumis aux limites habituelles de l’analyse en régressions de croissance. |
| Keywords: | panel data, policy and institutions, economic growth, croissance économique, données de panel, politiques et institutions |
| JEL: | N10 O40 O47 |
| Date: | 2011–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:843-en&r=ent |
| By: | Wennberg, Karl (The Ratio Institute and Stockholm School of Economics); Wiklund, Johan (Whitman School of Management); Hellerstedt, Karin (Jönköping International Business School); Nordqvist, Mattias (Jönköping International Business School) |
| Abstract: | We contrast the performance consequences of intra-family vs. external ownership transfers. Investigating a sample of all private family firms in Sweden that went through ownership transfers during ten years, we find family firms transferred to external owners outperforming those transferred within the family, but that survival is higher among intra-family transfers. We attribute these performance differences to the long-term orientation of family firms passed on to the next generation and to the entrepreneurial willingness of acquirers to bear uncertainty. Based on distinct ownership transition routes and theoretical mechanisms explaining performance differences, we outline implications for family business and entrepreneurship research. |
| Keywords: | long-term orientation; succession; ownership transfer; family firms; performance |
| JEL: | L26 M13 |
| Date: | 2011–08–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0172&r=ent |