Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272573 
Year of Publication: 
2023
Series/Report no.: 
IZA Discussion Papers No. 15946
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper investigates the relationship between state-based conflict and entrepreneurship. From a survey of the existing literature, we formulate two hypotheses: (1) state-based conflict has a negative association with productive and opportunity-motivated forms of entrepreneurship, and (2) a positive association with unproductive and necessity-motivated forms of entrepreneurship. We test these hypotheses by drawing on several state-based conflict and entrepreneurship measures, using appropriate estimators, and employing robustness checks. The evidence supports our hypotheses. Necessity-motivated start-up entrepreneurship is, on average, almost three times higher in countries in conflict than in countries not in conflict. Development level matters. In countries with less unemployment, more finance, and higher levels of physical, human capital and GDP, entrepreneurship is more resilient, and the ratio of female-to-male entrepreneurs in opportunity-motivated entrepreneurship higher.
Subjects: 
entrepreneurship
conflict
war
small business
employment
JEL: 
L26
M13
J23
N40
O11
O17
Document Type: 
Working Paper

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