While much attention has been devoted to analyzing how the institutional framework and entrepreneurship impact growth, how economic policy and institutional design affect entrepreneurship appears to be much less analyzed. We try to explain cross-country differences in the level of entrepreneurship by differences in economic policy and institutional design. Specifically, we use the Economic Freedom Index from the Fraser Institute to ask which elements of economic policy making and the institutional framework are conducive to the supply of entrepreneurship, measured by data on entrepreneurship from the Global Entrepreneurship Monitor. We find that the size of government is negatively correlated and sound money is positively correlated with entrepreneurial activity. Other measures of economic freedom are not significantly correlated with entrepreneurship.
Public Choice deals with the intersection between economics and political science. The journal was founded at a time when economists and political scientists became interested in the application of essentially economic methods to problems normally dealt with by political scientists. It has always retained strong traces of economic methodology, but new and fruitful techniques have been developed which are not recognizable by economists. Public Choice therefore remains central in its chosen role of introducing the two groups to each other, and allowing them to explain themselves through the medium of its pages.
Springer is one of the leading international scientific publishing companies, publishing over 1,200 journals and more than 3,000 new books annually, covering a wide range of subjects including biomedicine and the life sciences, clinical medicine, physics, engineering, mathematics, computer sciences, and economics.
This item is part of a JSTOR Collection.
For terms and use, please refer to our
Public Choice