Entrepreneurial Innovations, Entrepreneurship Policy and Globalization

IFN Working Paper No. 807

Journal of Development Economics, Vol. 110: 22–38, September, 2014.

51 Pages Posted: 27 Jul 2020

See all articles by Pehr-Johan Norbäck

Pehr-Johan Norbäck

Research Institute of Industrial Economics (IFN)

Lars Persson

Research Institute of Industrial Economics (IFN); Centre for Economic Policy Research (CEPR)

Robin Douhan

Research Institute of Industrial Economics (IFN); Uppsala University

Multiple version iconThere are 2 versions of this paper

Date Written: August 21, 2009

Abstract

What explains the world-wide trend of pro-entrepreneurial policies in the last few decades? We study entrepreneurial policy in a lobbying model taking into account the conflict of interest between entrepreneurs and incumbents. It is shown that international market integration leads to more pro-entrepreneurial policies. It becomes more difficult to protect the profits of incumbent firms from entrepreneurial entry and pro-entrepreneurial policies make foreign entrepreneurs less aggressive. Making use of the Doing Business database, we find, consistent with our theory, evidence that international openness reduces barriers to entry for new entrepreneurs and that the effect is stronger in countries with more rent-seeking governments.

Keywords: Entrepreneurship, Regulation, Innovation, Market Integration, Lobbying

JEL Classification: F15, D73, L26, L51, O31

Suggested Citation

Norbäck, Pehr-Johan and Persson, Lars and Douhan, Robin, Entrepreneurial Innovations, Entrepreneurship Policy and Globalization (August 21, 2009). IFN Working Paper No. 807, Journal of Development Economics, Vol. 110: 22–38, September, 2014., Available at SSRN: https://ssrn.com/abstract=1752919 or http://dx.doi.org/10.2139/ssrn.1752919

Pehr-Johan Norbäck (Contact Author)

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Lars Persson

Research Institute of Industrial Economics (IFN) ( email )

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Robin Douhan

Research Institute of Industrial Economics (IFN)

Box 55665
Grevgatan 34, 2nd floor
Stockholm, SE-102 15
Sweden
+46(0)86654521 (Phone)

Uppsala University

Box 513
Uppsala, 751 20
Sweden
+46(0)184711590 (Phone)

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