Institutions, Human Capital and Entrepreneurship Density

This study examines the impacts of national institutions and human capital on entrepreneurship density in a global sample of 67 economies over the period 2006–2016. Furthermore, the associations between human capital and institutions on entrepreneurial activities are investigated while controlling f...

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Bibliographic Details
Published inJournal of the knowledge economy Vol. 12; no. 3; pp. 1270 - 1293
Main Authors Nguyen, Bach, Canh, Nguyen Phuc, Thanh, Su Dinh
Format Journal Article
LanguageEnglish
Published New York Springer US 01.09.2021
Springer Nature B.V
Subjects
Economic Policy
Economics
Economics and Finance
Entrepreneurs
Entrepreneurship
Human capital
R & D/Technology Policy
Start-up
Social history
L26
Entrepreneurship
E02
Law systems
K10
Institutions
Social norms
M13
N00
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Summary:This study examines the impacts of national institutions and human capital on entrepreneurship density in a global sample of 67 economies over the period 2006–2016. Furthermore, the associations between human capital and institutions on entrepreneurial activities are investigated while controlling for financial development, economic growth, trade openness, FDI inflows and total natural rents. Employing the panel corrected standard error estimator to deal with cross-sectional dependence, we find that formal institutions represented by entrepreneurship procedures and the general institutional quality are positively associated with entrepreneurship density. Also, informal institutions represented by socialist history, common law system and colonial history are positively associated with entrepreneurship density. Notably, human capital has a moderating effect in reducing the negative impacts of weak institutions.
ISSN:1868-7865
1868-7873
DOI:10.1007/s13132-020-00666-w