Abstract
Developing the concept of institutional incongruence and employing panel data from 60 countries, we outline an alternative view of the informal economy and the effects of regulative institutions on entrepreneurship productivity. We find evidence that the informal economy's size is, largely, negatively associated with entrepreneurship productivity, and that in the presence of a large informal economy, governmental efforts to improve governance quality can be counterproductive. Our results suggest policy interventions aimed at changing institutions to practice formal entrepreneurship should be implemented cautiously to avoid inducing institutional incongruence.
Original language | English |
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Article number | 106002 |
Peer-reviewed scientific journal | Journal of Business Venturing |
Number of pages | 15 |
ISSN | 0883-9026 |
DOIs | |
Publication status | Published - 21.02.2020 |
MoE publication type | A1 Journal article - refereed |
Keywords
- 512 Business and Management
- entrepreneurship productivity
- opportunity-driven entrepreneurship
- necessity-driven entrepreneurship
- informal economy
- regulative institutions
- institutional incongruence
- 511 Economics
- 514,1 Sociology
Areas of Strength and Areas of High Potential (AoS and AoHP)
- AoHP: Strategic and entrepreneurial praxis
- AoS: Leading for growth and well-being