Regulations, institutional quality and entrepreneurship

  • Dustin ChambersEmail author
  • Jonathan Munemo
Original Article


This paper examines the impact of startup regulations and institutional quality on the level of new business activity in a panel of 119 countries between 2001 and 2012. We find robust evidence that new business creation is significantly lower in countries with excessive barriers to entry, a lack of high-quality governmental institutions, or both. Specifically, increasing by one, the number of steps required to start a new business, reduces entrepreneurial activity between 3 and 7%. Furthermore, a one standard deviation increase in the overall average level of institutional quality is associated with a 34% increase in new business activity.


Regulation Governance Institutions Entrepreneurship 

JEL codes

C23 D73 L26 L51 



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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Salisbury UniversitySalisburyUSA

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