2014

Entrepreneurship Policy and Globalization

Reprint No. 2014:42

Author(s): Pehr-Johan Norbäck, Lars Persson and Robin DouhanYear: 2014 Title: Journal of Development Economics Volume (No.): 110 (September) Pages: 22–38
Online article (restrictions may apply)
Preliminary version


What explains the world-wide trend of pro-entrepreneurial policies? We study entrepreneurial policy in the form of entry costs 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, since it is then (i) more difficult to protect domestic incumbents and (ii) pro-entrepreneurial policies make foreign entrepreneurs less aggressive. Using theWorld Bank Doing Business database, we find evidence that international openness is negatively correlated with the barriers to entry for new entrepreneurs, as predicted by the theory.


Reference:
Norbäck, Pehr-Johan, Lars Persson and Robin Douhan (2014), "Entrepreneurship Policy and Globalization". Journal of Development Economics 110(September), 22–38.

Pehr-Johan Norbäck

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Lars Persson

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lars.persson@ifn.se

Interdisciplinary European Studies

Trust in the European Union in Challenging Times

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This is the first book in the Interdisciplinary European Studies collection. This volume provides an interdisciplinary perspective on trust in the EU from the vantage point of political science, law and economics. Lars Oxelheim, Lund University and affiliated to IFN, is one of the authors.

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