Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81326
Authors: 
Douhan, Robin
Norbäck, Pehr-Johan
Persson, Lars
Year of Publication: 
2009
Series/Report no.: 
IFN Working Paper 807
Abstract: 
What explains the world-wide trend of pro-entrepreneurial policies in the last few decades? We study entrepreneurial policy in a lobbying model taking into account the con.ict of interest between entrepreneurs and incumbents. It is shown that international market integration leads to more pro-entrepreneurial policies. It becomes more difficult to protect the profits of incumbent firms from entrepreneurial entry and pro-entrepreneurial policies make foreign entrepreneurs less aggressive. Making use of the Doing Business database, we find, consistent with our theory, evidence that international openness reduces barriers to entry for new entrepreneurs and that the effect is stronger in countries with more rent-seeking governments.
Subjects: 
Entrepreneurship
Regulation
Innovation
Market Integration
Lobbying
JEL: 
D73
F15
L26
L51
O31
Document Type: 
Working Paper

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