Entrepreneurship and Economic Development: What is the Difference Between Austrian and New Institutional Approaches? (in Czech)

Politická ekonomie, Vol. 58, No. 5, pp. 623-640, 2010

18 Pages Posted: 31 Oct 2010 Last revised: 20 Sep 2012

See all articles by Tomáš Otáhal

Tomáš Otáhal

Mendel University - Faculty of Economics and Business Administration

Ladislava Grochová

Mendel University - Faculty of Economics and Business Administration

Date Written: March 29, 2008

Abstract

What is the role of entrepreneurship in economic development from the perspective of neo-austrian and new institutional economics and what is the difference between these approaches? Neo-austrian economists claim that economic development is caused by entrepreneurial discovery. New institutional economists argue that structure of incentives determined by the institutional environment provides a guideline for entrepreneurial decision-making. Hence, an institutional environment that rewards rent-seeking does not provide opportunities for economic development. In this paper we offer a comparison of these approaches to show that both entrepreneurial discovery and institutional environment are closely related. Moreover, with the comparison we demonstrate that entrepreneurial decision-making plays more important role in economic development when an institutional change is taken into account.

Note: Downloadable document in Czech.

Keywords: Economic development, entrepreneurship, neo-austrian economics, new institutional economics

JEL Classification: B25, D8, L26, O1

Suggested Citation

Otáhal, Tomáš and Grochová, Ladislava, Entrepreneurship and Economic Development: What is the Difference Between Austrian and New Institutional Approaches? (in Czech) (March 29, 2008). Politická ekonomie, Vol. 58, No. 5, pp. 623-640, 2010, Available at SSRN: https://ssrn.com/abstract=1699879

Tomáš Otáhal (Contact Author)

Mendel University - Faculty of Economics and Business Administration ( email )

Staňkova 578/16b
Brno, 602 00
Czech Republic

Ladislava Grochová

Mendel University - Faculty of Economics and Business Administration ( email )

Zemědělská 1a
Brno, 613 00
Czech Republic
+420 545 132 701 (Phone)
+420 545 132 797 (Fax)

HOME PAGE: http://www.pef.mendelu.cz/en/?lang=en

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