A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected Countries

In this paper, we try to explain cross-country differences in the level of entrepreneurship using self-employment and innovation as proxy variables. For this purpose, we use a comparative approach to explore empirically the ways in which institutions have influenced self-employment and innovation. I...

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Main Authors: Saeid Eisa Zade, Jahan Bakhsh Mehranfar, Mahdi Ferdosi
Format: Article
Language:fas
Published: Allameh Tabataba'i University Press 2012-12-01
Series:Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī
Subjects:
Online Access:https://joer.atu.ac.ir/article_934_21d0edf68b060e90fb0735832029a724.pdf
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author Saeid Eisa Zade
Jahan Bakhsh Mehranfar
Mahdi Ferdosi
author_facet Saeid Eisa Zade
Jahan Bakhsh Mehranfar
Mahdi Ferdosi
author_sort Saeid Eisa Zade
collection DOAJ
description In this paper, we try to explain cross-country differences in the level of entrepreneurship using self-employment and innovation as proxy variables. For this purpose, we use a comparative approach to explore empirically the ways in which institutions have influenced self-employment and innovation. In this paper, we make the assumption that national patent grants represent innovation and that national self-employment rates represent job replacement. Then, we investigate the relationship between the institutional setting, in terms of economic freedom measures, and entrepreneurship which is measured by proxy variables of self-employment and innovation in a panel data setting covering selected countries for the time-period of 1990-2009. The empirical findings show that indices of corruption perception, business freedom and trade freedom are negatively correlated with self-employment rate. On the other hand, investment freedom and freedom from government intervention have positive effect on self-employment. Interestingly, we found that institutional factors that determine self-employment and innovation may act in opposite directions: what encourages self-employment might discourage innovation and vice-versa.
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spelling doaj.art-23472db0628d4a7397d67c8b29c03a012023-12-26T07:58:03ZfasAllameh Tabataba'i University PressFaslnāmah-i Pizhūhish/Nāmah-i Iqtisādī1735-210X2476-64532012-12-011247153174934A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected CountriesSaeid Eisa Zade0Jahan Bakhsh Mehranfar1Mahdi Ferdosi2Assistant Professor of Economics, Faculty of Economics and Social Sciences, Bu-Ali-Sina UniversityM.Sc. Student of Economics, Faculty of Economics and Social Sciences, Bu-Ali-Sina University, Hamedan, Iran.M.Sc. Student of Economics, Faculty of Economics and Social Sciences, Bu-Ali-Sina University, Hamedan, Iran.In this paper, we try to explain cross-country differences in the level of entrepreneurship using self-employment and innovation as proxy variables. For this purpose, we use a comparative approach to explore empirically the ways in which institutions have influenced self-employment and innovation. In this paper, we make the assumption that national patent grants represent innovation and that national self-employment rates represent job replacement. Then, we investigate the relationship between the institutional setting, in terms of economic freedom measures, and entrepreneurship which is measured by proxy variables of self-employment and innovation in a panel data setting covering selected countries for the time-period of 1990-2009. The empirical findings show that indices of corruption perception, business freedom and trade freedom are negatively correlated with self-employment rate. On the other hand, investment freedom and freedom from government intervention have positive effect on self-employment. Interestingly, we found that institutional factors that determine self-employment and innovation may act in opposite directions: what encourages self-employment might discourage innovation and vice-versa.https://joer.atu.ac.ir/article_934_21d0edf68b060e90fb0735832029a724.pdfentrepreneurshipself-employmentinnovationinstitutionseconomic freedom
spellingShingle Saeid Eisa Zade
Jahan Bakhsh Mehranfar
Mahdi Ferdosi
A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected Countries
Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī
entrepreneurship
self-employment
innovation
institutions
economic freedom
title A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected Countries
title_full A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected Countries
title_fullStr A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected Countries
title_full_unstemmed A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected Countries
title_short A Comparative Approach to Explore the Effects of Institutions on Self-Employment and Innovation in Selected Countries
title_sort comparative approach to explore the effects of institutions on self employment and innovation in selected countries
topic entrepreneurship
self-employment
innovation
institutions
economic freedom
url https://joer.atu.ac.ir/article_934_21d0edf68b060e90fb0735832029a724.pdf
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