Institutional quality, knowledge spillovers and entrepreneurship. (25th October 2011)

• Record Type: Journal Article
• Authors: Chipalkatti, Niranjan; Doh, Jonathan P.; Rishi, Meenakshi
• Is Part Of: International journal of economic policy in emerging economies. Volume 4:Number 4(2011)
• Page Start: 307
• Page End: 329
• Publication Date: 2011-10-25
• Subjects: entrepreneurship -- institutions -- knowledge spillovers -- economic policy; Russia (Federation) -- Economic policy -- 1991- -- Periodicals; Former Soviet republics -- Economic policy -- 1991- -- Periodicals; China -- Economic policy -- 1991- -- Periodicals; 338.947
• Languages: English
• ISSNs: 1752-0452

Abstract

We examine the impact of institutional quality on early stage and formal entrepreneurial activity and on knowledge spillovers. We use four institutional variables – the protection of property rights, business freedom, financial depth, and corruption as proxies for institutional quality. Results suggest that financial institutions matter for formal and early-stage entrepreneurship. Corruption deters formal entrepreneurship, but the presence of corrupt institutions positively influences the conversion of early-stage entrepreneurial entities into formal business ventures. The presence of scientific knowledge in the public domain encourages the knowledge spillover process to early stage entrepreneurs but is retarded by a strong legal and regulatory environment.