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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Format: | Article |
Language: | fas |
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Allameh Tabataba'i University Press
2012-12-01
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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. |
first_indexed | 2024-03-08T19:27:16Z |
format | Article |
id | doaj.art-23472db0628d4a7397d67c8b29c03a01 |
institution | Directory Open Access Journal |
issn | 1735-210X 2476-6453 |
language | fas |
last_indexed | 2024-03-08T19:27:16Z |
publishDate | 2012-12-01 |
publisher | Allameh Tabataba'i University Press |
record_format | Article |
series | Faslnāmah-i Pizhūhish/Nāmah-i Iqtisādī |
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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