Effects of Institutions on Entrepreneurship Development in Developing Economies
Abstract:
This study is galvanized by an accelerating
disturbing debate in the circle of researchers relating to the effect of
institutional influences on entrepreneurship development in the emerging
economies. This study investigates the effect of combined formal and informal
institutional factors on entrepreneurship development in developing economies.
To accomplish the stated objectives, the empirical work of this study
engaged secondary data-sets that covered 20 developing countries spanning
between 1996-2022 and analyzed the data using the following estimation
techniques: Panel Ordinary Least Square (POLS), Feasible Generalized Least
Square (FGLS), Fixed Effect (FE), and Random Effect (RE) approach. The results of the study revealed that a unit increase in each employed
institution has positive or negative effect on entrepreneurship development in
emerging economies. The study recommends among other things that; deepening the
developments of money deposit and micro-financial institutions to facilities credit
to various individuals or organizations that embrace self-employment as well as the
identification by the governments of the emerging economies of those economic
factors that can make GDP growth to promote self-employment in their various
countries. This study therefore concludes that
institutional influences have varying positively and negatively impact on
entrepreneurship development in emerging economies.
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