Institutions and entrepreneurship: unidirectional or bidirectional causality?

Samadi, Ali Hussein

doi:10.1186/s40497-018-0129-z

Cited by 28 publications

(21 citation statements)

References 63 publications

(87 reference statements)

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“…According to the obtained value of the , a 65% variance in economic freedom was explained by the model. Consequently, this result is consistent with the points of Sine and David (2010) and the results of Samadi (2019) who declare that entrepreneurs are important in creating a friendly regulatory environment. In this case, when the effect is transmitted from entrepreneurship to institutions, total effects between constructs equal direct effects (path coefficients) as no indirect effect is predicted.…”

Section: From Entrepreneurship To Institutionssupporting

confidence: 91%

“…To our best knowledge, a limited amount of experiential work has highlighted the impact of entrepreneurship on institutions or causal relationships between them. Recently, Samadi (2019) has studied the causality of institutions and entrepreneurship by applying the Granger causality test. However, most previous empirical studies that test the link between institutions and entrepreneurship focused on the impact transmitted from institutions to entrepreneurship.…”

Section: Introductionmentioning

confidence: 99%

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Institutions and entrepreneurship: Empirical evidence for OECD countries

Khalilov¹,

Yi²

2021

EBER

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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

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Section: From Entrepreneurship To Institutionssupporting

confidence: 91%

Section: Introductionmentioning

confidence: 99%

Institutions and entrepreneurship: Empirical evidence for OECD countries

Khalilov¹,

Yi²

2021

EBER

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“…A body of research suggests that institutions would lead to entrepreneurial development through economic growth and development. These studies include Reddy (2012) and Youssef et al (2018).…”

Section: Institutions and Entrepreneurshipmentioning

confidence: 99%

Foreign aid and entrepreneurship in Africa: the role of remittances and institutional quality

Ajide

Osinubi

2020

Econ Change Restruct

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This study investigates the impact of foreign aid and remittance inflows on entrepreneurship progress in Africa. The role of institutional quality in the relationship between foreign aid and entrepreneurship is also investigated. We explore data of 19 African countries for a period of 2006-2017, and panel data regression techniques are employed. The study finds that: (1) Foreign aid impact on entrepreneurship is negative. (2) The remittances mediate the negative impact of foreign aid on entrepreneurship. (3) Institutional quality mediates the negative impact of foreign aid on entrepreneurial progress. (4) The threshold level of remittance at which foreign aid would meaningfully enhance entrepreneurship is 10.59 as a percentage of GDP while that of institutional quality is 5.04 on a scale of 10 point. (5) The role of remittances and foreign aids is complementary in firm start-up activities. (6) Institutional quality plays important roles in moderating impact of foreign aid on firm start-up activities. In addition, our results show that concentration in banking industry does not benefit entrepreneurial activities. The study concludes that foreign aids and remittances perform complementary roles in improving the level of entrepreneurial development in Africa. The strong institutional environment is very important in promoting entrepreneurial success. These findings are robust to alternative estimations.

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“…Due to the important role that institutions play, it is convenient to consider what some authors have called "bidirectional causality" between institutions and entrepreneurship [21,22]. From this perspective, it is considered that entrepreneurs, through the activities they carry out in the environment generated by institutions, create new opportunities and conditions that institutions must face.…”

Section: Introductionmentioning

confidence: 99%

The Relationship between Green Innovation, Social Entrepreneurship, and Sustainable Development

2020

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Economic growth is one of the important objectives of economic policy due to the beneficial effects it has on employment and economic well-being. The work carried out in the last few decades has highlighted the roles that entrepreneurship and innovation play in promoting this objective. However, the environmental deterioration resulting from policies implemented to stimulate growth has led to considerations of other objectives that are more compatible with the defense of the environment, such as sustainable development. Therefore, it is important to determine the factors that stimulate them. This paper considers traditional and social entrepreneurship and innovations and green innovation. The effect of institutions as generators of legal and economic environments on both types of entrepreneurship is contemplated. On the other hand, considering the possibility of “bidirectional causality”, the relationship between both types of entrepreneurship and institutions is also analyzed. This will allow us to design measures aimed at stimulating sustainable development. The objective of this paper is to analyze these relationships through two estimates: first, an analysis of the relationship between both types of entrepreneurship and innovations and sustainable development and second, the relationship between social and traditional entrepreneurship and institutions. In both cases, the path coefficient of each of them is compared with respect to the final objective, which would be useful when designing economic policies. Empirical analysis is carried out, producing an estimation of the structural equation modeling (SEM) model using the partial least squares (PLS) technique in the case of 20 Organization for Economic Co-operation and Development (OECD) countries.

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Institutions and entrepreneurship: unidirectional or bidirectional causality?

Cited by 28 publications

References 63 publications

Institutions and entrepreneurship: Empirical evidence for OECD countries

Institutions and entrepreneurship: Empirical evidence for OECD countries

Foreign aid and entrepreneurship in Africa: the role of remittances and institutional quality

The Relationship between Green Innovation, Social Entrepreneurship, and Sustainable Development

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