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The entrepreneurial gains from market integration in the new EU member states

Abstract

This paper investigates the impact of economic integrations on entrepreneurial outcomes. The study bridges a gap between the literature on entrepreneurship and trade by exploring how international trade and global value chain (GVC) integration influence the share of start-ups and high-growth firms in manufacturing industries in eleven Central and Eastern European (CEE) member states of the European Union (EU) during the 2011–2016 period. Exports, imports, and forward GVC participation increase the share of start-ups and high-growth firms, and these effects are evident in low- and high-technology-intensive industries. The effects of trade and GVC integration are more pronounced among the first group of CEE that joined the EU than among latecomers.

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Notes

  1. For detailed description of the database see Online Appendix of the paper.

  2. This finding is particularly relevant since our baseline models yielded insignificant coefficient on impact of forward participation in EU-13 value chains on entry share but inclusion of interaction term with technological intensity makes both variables highly statistically significant. Printouts available on request.

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Funding

This work was fully supported by Croatian Science Foundation under the project IP-2016-06-3764.

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Correspondence to Nebojša Stojčić.

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Stojčić, N., Anić, ID. & Svilokos, T. The entrepreneurial gains from market integration in the new EU member states. Small Bus Econ 57, 1–20 (2021). https://doi.org/10.1007/s11187-020-00363-7

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  • DOI: https://doi.org/10.1007/s11187-020-00363-7

Keywords

  • International trade
  • Global value chains
  • Start-ups
  • High-growth firms

JEL classifications

  • F14
  • F15
  • L26