The objective of the article is to test the bidirectional association of institutions and entrepreneurship in 19 OECD countries over the period of 2014-2016. Research Design & Methods: Most of the previous studies emphasise the role of institutions in entrepreneurial activity, while ignoring the role of entrepreneurship in the building of institutions. We estimate how institutions and entrepreneurship relate to each other and contribute to economic growth. For the estimation, we apply the structural equation modelling (SEM) with panel data. Findings: Estimated results show that the regulatory dimension of institutions and entrepreneurship have a strong bidirectional relationship -as we expected -while the normative dimension of institutions and entrepreneurship have a unidirectional association. These two interrelated factors stimulate economic growth.Implications & Recommendations: Policymakers should create a more friendly regulatory environment for entrepreneurship to flourish. In this process, institutional entrepreneurs also play an important role. Contribution & Value Added: There is a need for research on the bilateral relationship between institutions and entrepreneurship. Most previous articles consider the effect that is transmitted from institutions to entrepreneurship. However, there exists a two-way causal relationship between institutions and entrepreneurship that is worth exploring. In this regard, the greatest contribution of this article is that it is one of the first empirical works devoted to testing the two-way causal relationship between institutions and entrepreneurship.
Article type:research article
With the UK-Korea-EU Free Trade Agreement (FTA) and the UK-Japan-EU FTA, the gross domestic products of the UK, Korea, Japan, and the EU will increase. The UK's exports to Korea and Japan, and Korea's exports to the UK, Japan, and the EU will increase in some manufacturing sectors, particularly the automotive sector. Likewise, Japan's manufacturing exports to the UK and the EU will grow. However, UK and Japanese exports to the EU and Korea, respectively, will decline in this sector.There will be positive welfare effects on the UK, Korea, and Japan, but negative welfare effects on the EU, China, and the rest of the world (ROW). While UK imports from Korea and Japan and Korean imports from the UK and the EU will both increase and have mixed trade creation and diversion effects, UK imports from the EU will decrease in the manufacturing sectors. Korea's imports from Japan will decline, but Japan's imports from the UK, Korea, and the EU will increase due to trade creation and diversion effects. China's imports from Korea and Japan will decline, whereas China's imports from the UK and the EU will increase. EU imports from Korea and Japan will increase due to trade creation and diversion effects, but EU imports
This paper investigates the responses of real exchange rate and current account as well as consumption in a small open economy to fiscal policies using an alternative time horizon model. Cointegration tests present that there is no stable relationship between the fiscal variables and the real exchange rate, current account, or consumption. The maximum likelihood estimation suggests that fiscal policies seem not to be much effective as the conventional or finite horizon model predicts. REP with infinite horizons seems to be more conceivable to explaining the fluctuation of consumption, real exchange rate, and current account in Korea. [F31, F32]
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