Economic freedom and entrepreneurial activity

2012 ◽  
Vol 50 (9) ◽  
pp. 1686-1711 ◽  
Author(s):  
Juan Carlos Díaz‐Casero ◽  
D. Ángel Manuel Díaz‐Aunión ◽  
Mari Cruz Sánchez‐Escobedo ◽  
Alicia Coduras ◽  
Ricardo Hernández‐Mogollón
Keyword(s):  
Economic Development ◽  
Economic Freedom ◽  
Goodness Of Fit ◽  
Entrepreneurial Activity ◽  
Government Size ◽  
Content Type ◽  
Heritage Foundation ◽  
Global Competitiveness ◽  
Level Of Economic Development ◽  
Economic Freedom Index

PurposeThe purpose of this paper is to examine empirically whether economic freedom affects entrepreneurial activity in three groups of countries, classified according to economic development.Design/methodology/approachData on the index of entrepreneurial activity cover the period between 2002 and 2009, and are taken from the annual GEM (Global Entrepreneurship Monitor) reports and from the Index of Economic Freedom published by The Heritage Foundation from 1995 to 2009. The same analysis is carried out, grouping the countries by development level, following the classification included in the Global Competitiveness Report 2009‐2010. A Ridge regression analysis is performed to measure the model's goodness‐of‐fit and to determine equations that can be used for future predictions.FindingsThe results obtained in the correlation analysis show that economic freedom is closely related to entrepreneurial activity. The results suggest that TEA rates, opportunity‐TEA rates and necessity‐TEA rates decrease when there is an increase in economic freedom in a country, as just two of the areas analyzed – i.e. “government size” and “fiscal freedom” – appear to foster the emergence of new entrepreneurs. When countries are grouped by level of economic development, the results for countries belonging to the “Innovation‐Driven Economies” group show that the opportunity‐TEA rates increase as the economic freedom index grows.Originality/valueThe study indicates that entrepreneurship by opportunity increases in the group of Innovation‐Driven Economies with smaller “government size” and more “fiscal freedom”.

Targeted state economic development incentives and entrepreneurship

2018 ◽  
Vol 7 (3) ◽  
pp. 235-247 ◽  
Author(s):  
Meg Patrick Tuszynski ◽  
Dean Stansel
Keyword(s):  
Economic Development ◽  
Economic Freedom ◽  
Entrepreneurial Activity ◽  
Data Set ◽  
Content Type ◽  
Incentive Programs ◽  
Economic Development Incentives ◽  
State Economic Development ◽  
Development Incentives ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between state economic development incentives programs and entrepreneurial activity. Design/methodology/approach The authors use panel data and a fixed-effects model to examine the determinants of five measures of entrepreneurial activity. To measure state economic development incentives programs, they use a new and substantially improved data set from Bartik (2017). They also include a measure for economic freedom, the Fraser Institute’s Economic Freedom of North America index. Findings The authors find a robustly negative relationship between development incentives and patent activity. They find some evidence that incentives are negatively associated with small business establishments (<10 employees) as a percentage of total establishments but positively associated with the large business establishment (>500 employees) share. They also find evidence of a positive relationship between economic freedom and both patent activity and net business formation. Research limitations/implications The results imply that economic development incentive programs are unlikely to increase entrepreneurial activity and may decrease it. They also imply increased economic freedom (lower taxes, lower spending, and lower governmental restrictions on labor markets) may increase entrepreneurial activity. Originality/value To the authors’ knowledge, this paper provides the first examination of the relationship between development incentives and entrepreneurial activity that utilizes Bartik (2017), a new vastly improved data set of state economic development incentive programs. The paper also contributes to the literature on the relationship between economic freedom and entrepreneurial activity.

Cross-cultural differences in the entrepreneurial activity of men and women: a fuzzy-set approach

2017 ◽  
Vol 32 (4) ◽  
pp. 281-299 ◽  
Author(s):  
Nuno Fernandes Crespo
Keyword(s):  
Economic Development ◽  
National Culture ◽  
Fuzzy Set ◽  
Cultural Context ◽  
Public Policies ◽  
Entrepreneurial Activity ◽  
Men And Women ◽  
Content Type ◽  
Culture Dimensions ◽  
Level Of Economic Development

Purpose The aim of this paper is threefold: to identify the combinations of national culture dimensions that lead to high (or low) entrepreneurial activity (EA) for men and women, to understand the role of economic development as a relevant condition that combines with national culture dimensions to achieve high (or low) male or female EA and to identify the differences between the configurations that lead to those outcomes. Design/methodology/approach Using data from the Global Entrepreneurship Monitor (GEM) and from the Hofstede Centre for 77 countries, this study uses a fuzzy-set qualitative comparative analysis (fsQCA) to explore complex causal relations between national culture dimensions, the level of economic development (conditions) and the male and female EA (outcomes). Findings This research provides three major insights. First, it is not possible to talk about a single culture that promotes entrepreneurship, but instead in several entrepreneurial cultures. This is particularly interesting when distinguishing between genders, because there are configurations that are specific to one of the genders. Second, different levels of economic development (high/low) combine with national culture dimensions to produce different configurations that can lead to high EA. Third, differences found between the solutions for both genders are higher in the case of the configurations that lead to high EA than in the ones that lead to low EA. Practical implications These results are very important to governments and policy makers with the objective of stimulating the EA within their specific countries. When designing public policies to promote entrepreneurship, they should take into consideration the specific cultural context of the country. The cultural context of each country presents multiple dimensions; therefore, the design of public policies should not rely on single, occasional and unarticulated policies. There are countries where the cultural context only promotes EA for males or females. In those cases, the public policies should differentiate between men and women, to be equally effective. Originality/value By using a configurational approach, this study identifies several configurations of national culture dimensions and the level of economic development that lead to the same outcomes: high (or low) EA. Some of the configurations are specific to achieving only male or female EA (high or low).

An economic view of entrepreneurial intention

2020 ◽  
Vol 26 (8) ◽  
pp. 1807-1826
Author(s):  
Walid Adam Nakara ◽  
Rahma Laouiti ◽  
Roberto Chavez ◽  
Samiha Gharbi
Keyword(s):  
Economic Development ◽  
Longitudinal Data ◽  
Entrepreneurial Intention ◽  
Entrepreneurial Intentions ◽  
Content Type ◽  
Global Competitiveness ◽  
Level Of Economic Development ◽  
World Economic ◽  
Global Competitiveness Index

PurposeThe role of macrolevel factors in entrepreneurial intention remains as an underexplored issue in the literature. The purpose of this study is to reduce this gap by testing the effect of economic development on entrepreneurial intention.Design/methodology/approachThis study adopts a quantitative approach that formally tests for a quadratic relationship between economic development measured by the gross domestic product (GDP) and the Global Competitiveness Index (GCI)) and entrepreneurial intention based on longitudinal data covering 72 countries over the 2010–2016 period. Data are gathered from the Global Entrepreneurship Monitor (GEM), the International Monetary Fund (IMF) and the World Economic Forum (WEF).FindingsThe results reveal the existence of a U-shaped relationship between the country's GDP per capita and individuals' entrepreneurial intention. The results also support a similar relationship between GCI and entrepreneurial intention. These findings suggest that individuals' entrepreneurial intentions differ between countries depending on the level of economic development.Originality/valueTo the authors' knowledge, this article presents the first attempt to investigate the role of economic development on entrepreneurial intention based on longitudinal data covering a large sample of countries. Moreover, by providing evidence of a U-shaped relationship between economic progress and individuals' propensity to attempt an entrepreneurial career, this study enhances the understanding of the macrolevel determinants of entrepreneurial intention.

Ranking Belarus on competitiveness and economic freedom

2019 ◽  
Vol 8 (2) ◽  
pp. 226-240
Author(s):  
Anthony Evans ◽  
Sierz Naurodski
Keyword(s):  
Economic Freedom ◽  
English Language ◽  
Primary Data ◽  
Content Type ◽  
Global Competitiveness ◽  
Current State ◽  
Economic Freedom Index ◽  
World Economic ◽  
Global Competitiveness Index ◽  
Available Information

Purpose The purpose of this paper is to provide primary data so that Belarus can be incorporated into existing Global Performance Indicators (GPIs). Design/methodology/approach The authors conducted a survey following World Economic Forum (WEF) methods and combined our data with publicly available information. Findings The authors find that Belarus would have risen from 61st in the 2012/2013 Global Competitiveness Index to 55th in 2013/2014. The authors also estimate a position of 125th on the 2018 Economic Freedom Index. Research limitations/implications Many GPIs have flaws and the findings outline how they can be improved to gain more accurate views. Practical implications Policymakers can now make meaningful judgments around how competitive the Belarusian economy is, and the extent of economic freedom relative to its peers. Social implications Belarus has received sanctions on account of its policy environment and this paper sheds light on the current state of economic freedom. Originality/value The paper utilises primary data that has been previously unpublished in the English language.

Efficiency Driven Effect of Education in China: The Perspective of Global Competitiveness and Graduate Education

2021 ◽  
Vol 1 (1) ◽  
pp. 36-43
Author(s):  
Jia Liu ◽  
Lun Li
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Economic Development ◽  
Practical Significance ◽  
Education Policies ◽  
Global Competitiveness ◽  
Higher Education Policies ◽  
Level Of Economic Development ◽  
Education In China

Capital, natural resources, technology and education are often considered to be the most important factors in improving the level of economic development. China is in the "efficiency-driven" stage of economic development. There are objective laws in the development of education level and economic growth, but they interact with each other. Economic growth provides the foundation and necessary conditions for the development of education. At the same time, the role of education in promoting economic growth is also very obvious. Based on the perspective of postgraduate training, this paper studies the role of education in economic efficiency-driven, through the study of theory, data collection and empirical analysis, combined with the development characteristics of China's higher education, and compares China's and US higher education policies to guide China's higher education. The development of education, and then promote the transformation of China into the "innovation-driven" stage, has certain theoretical and practical significance.

Smart economic development patterns in Europe: interaction with competitiveness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jurgita Bruneckienė ◽  
Jonas Rapsikevičius ◽  
Mantas Lukauskas ◽  
Ineta Zykienė ◽  
Robertas Jucevičius
Keyword(s):  
Economic Development ◽  
Industrial Revolution ◽  
European Countries ◽  
Low Carbon ◽  
Data Set ◽  
Content Type ◽  
Low Carbon Economy ◽  
Global Competitiveness ◽  
Cross Country ◽  
The 2008 Financial Crisis

Purpose This paper aims to investigate the smart economic development (SED) patterns in Europe in relation to competitiveness. Motivational focus corresponds to global events: the fourth industrial revolution, transition to a low-carbon economy, economic shocks (such as the 2008 financial crisis, Brexit or the coronavirus pandemic), which requires rethinking development policies, targeting competitiveness increase and reducing imbalances in economic development. Design/methodology/approach The analysis includes self-organising neural networks cluster analysis and correlations, comparative analysis of SED indicators structure and cumulative index estimation with World Economic Forum (WEF) global competitiveness index. The panel data set of 19 years from 2000 to 2018 for 30 European countries. Findings Overall, cross-country examination suggests that European countries of higher competitiveness illustrate higher estimates in SED. The key determinants are juridical fairness, social responsibility, competence building, intelligence and welfare employment to develop smart patterns for reaching higher competitiveness. Research limitations/implications The limitations relate to the particular sample of European countries and gathering statistical data and a methodology of the SED index calculation. In addition, the paper contains a macroeconomic environment focus on competitiveness estimation. Further research may be improved with micro and mezzo environment incorporation at a cross-country analysis level. Practical implications By linking well-known terms of competitiveness and economic development with a concept of smartness, new approaches to policymaking emerged. The methodology presented in this paper has implications for territorial cohesion policies, competitiveness and branching strategies. The combination of SED sub-indexes and WEF GCI might aid a more accurate ex ante measurement. Social implications The findings are essential for fostering a smart approach in economic development for long-term competitiveness. Originality/value This paper provides original empirical evidence about the relationship between SED and competitiveness and adds new knowledge that smartness becomes a way for building countries’ competitiveness by identified two profiles of SED patterns by development stages, namely, integrated to economic development and institutional-based which is divided to focus and balanced.

Measuring urban competitiveness: ranking European large urban zones

2017 ◽  
Vol 10 (5) ◽  
pp. 479-496 ◽  
Author(s):  
Lucía Sáez ◽  
Iñaki Periáñez ◽  
Iñaki Heras-Saizarbitoria
Keyword(s):  
Economic Development ◽  
Related Factors ◽  
Urban Competitiveness ◽  
Content Type ◽  
Basic Dimension ◽  
Level Of Economic Development ◽  
Complex Relationships ◽  
Weighted Aggregate ◽  
High Level ◽  
Practical Implications

Purpose This paper aims to identify the main dimensions that determine the ability of cities to compete as locations for business and hubs for investment which can help policymakers to manage and prioritize urban development strategies. Design/methodology/approach A composite indicator is proposed as a weighted aggregate of sub-indicators for the identified component dimensions (basic, efficiency-related and innovation-related competitiveness). The indicator is used to draw up a ranking of 159 European Large Urban Zones (LUZs) located in 26 EU countries based on 31 indicators, broken down into the three core dimensions of urban competitiveness identified. Findings The dimensions underlying urban competitiveness in relation to the location of firms and attracting investment determine the level of economic development of the LUZs. The most competitive cities in the sample have a high level of economic development, and the innovation dimension is the most significant one for the three groups of cities considered, followed by the efficiency dimension and, to a lesser extent, the basic dimension. Practical implications The findings provide guidance to policymakers on the most relevant dimensions for urban competitiveness. Originality/value This paper contributes to the literature shedding light on the complex relationships between efficiency-related and innovation-related factors with regard to urban competitiveness.

scholarly journals Influence of economic freedom and its subcomponents on risk-taking behavior

2019 ◽  
Vol 12 (4) ◽  
pp. 335-356 ◽  
Author(s):  
Rafik Harkati ◽  
Syed Musa Alhabshi ◽  
Salina Kassim
Keyword(s):  
Risk Taking ◽  
Economic Freedom ◽  
Banking Sector ◽  
Banking System ◽  
Islamic Banks ◽  
Content Type ◽  
Economic Freedom Index ◽  
Risk Taking Behavior ◽  
The Government ◽  
Conventional Banks

Purpose The purpose of this paper is to investigate the influence of economic freedom and six relevant subcomponents of it on the risk-taking behavior of banks in the Malaysian dual banking system. It also aims to make a comparative analysis between Islamic and conventional banks operating in this dual banking sector. Moreover, the study is an effort to enrich the existing literature by presenting empirical evidence on the argument that the risk-taking behavior of the two types of banks is indistinguishable given that they operate in the same regulatory environment. Design/methodology/approach Secondary data of all banks operating in the Malaysian banking sector are collected from FitchConnect database, in addition to the economic freedom index from Foundation Heritage for the period 2011–2017. Generalized least squares technique is employed to estimate the influence of economic freedom and the six relevant subcomponents of it on the risk-taking behavior of banks. Findings The level of economic freedom influenced risk-taking behavior within the banking sector as a whole, conventional and Islamic banking sectors negatively during the study period (2011–2017). Risk-taking behavior of conventional and Islamic banks is similar. However, conventional banks turn to be less influenced by economic freedom level as compared to Islamic banks. Practical implications The government and regulators may benefit from the results by rethinking and setting the best economic freedom index that better serves the stability of the banking system, and lessens banks’ risk-taking inclination. Originality/value To the present time, this paper is thought to be of a significant contribution. Given the argument that Islamic and conventional banks behave in the same way. This is one of the first attempts to address this issue in light of the influence of economic freedom and six subcomponents of it on the risk-taking behavior of banks operating in a dual banking system.

scholarly journals Development strategy of production enterprises to ensure competitiveness and development of economic systems

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 60-67
Author(s):  
Valentin Susidenko ◽  
Julia Susidenko
Keyword(s):  
Economic Development ◽  
Development Strategy ◽  
Food Industry ◽  
Economic Systems ◽  
Competitive Advantages ◽  
Global Competitiveness ◽  
Operation Conditions ◽  
The Development Strategy ◽  
Level Of Economic Development ◽  
Current Operation

The paper deals with the problem of determination the development strategy enterprises of the food industry in the conditions of integration and globalization processes. The problems influencing the level of global competitiveness determined. Identified key competitive advantages and their relationship with the factors of the competitive environment. This allowed distinguishing the development of strategic priorities the food industry of Ukraine to achieve competitive advantages in the context of current operation conditions. The article deals with the fundamentals of developing the strategy of enterprise economic development. In estimating the level of economic development the graphic analytical model has been suggested. The development trends have been investigated for determining the range of enterprise strategic alternatives. The typical positions of enterprises have been stated depending on the life cycle and the position on the market in order to take into account the most probable prospective trends.

scholarly journals Institutional Environment Modernization In Ukraine: Evaluation And Analysis

2019 ◽  
Author(s):  
Z. Shevchuk ◽  
N. Fedorchuk
Keyword(s):  
Economic Development ◽  
Economic Freedom ◽  
Institutional Environment ◽  
Social Situation ◽  
Optimal Level ◽  
Global Competitiveness ◽  
Doing Business ◽  
Socioeconomic System ◽  
Economic Sphere ◽  
Global Competitiveness Index

In this article the elements of institutional environment development and strategies for solving the problem of stable functioning of social and economic sphere of life of society are considered, discussed and analyzed. The relevance of the study is an attempt to highlight the main indicators of modernization of the institutional environment of Ukraine. These indicators are: global index of the effectiveness of public administration, the index of incapacity of states, the index of global competitiveness, the index of economic freedom, the index of easiness of doing business, the index of acceptance of corruption. All these indicators are included in the process of formation of the institutional environment of Ukraine. The research is based on the methods of the empirical research:, observation, comparison, and, in addition, on the methods of content analysis. Results. The institutional environment provides the basis for the activity for the subjects of the socioeconomic system and also defines the vector of its development. The Global Competitiveness Index not only assesses the degree of competitiveness of a country, but also helps to see the real situation in the country. It shows its competitive advantages and problems that slow down economic development. The Index of Economic Freedom identifies the main problems of an optimal level of economic freedom. It shows that the higher the index of economic freedom leads to the higher level of welfare of the population. The Easiness of Doing Business Index assesses the «rules of the game». In other words, laws, regulations, and other government acts that have impact on reducing unprofitable and bankrupt businesses. This index, in addition, assesses the condition for facilitating for doing business in Ukraine. The Failed States Index helps to analyze Ukraine's ability to control the integrity of its territory, political, demographic, economic and social situation in the country The Corruption Perceptions Index is usually used in political and econometric studies to explain the effectiveness of government administration, economic development and the level of democracy in Ukraine. Moreover, it is used to reduce the corruption in government-business relations. The institutional environment in Ukraine continuously forming. This is why the analysis of some elements of the development of the institutional environment in Ukraine is necessary to identify the optimal strategy for solving the problem of stable functioning of social and economic sphere of life of society

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