Effects of institutions on the entrepreneurial dynamics of Mercosur during the period 2002-2017
DOI:
https://doi.org/10.22267/rtend.222302.203Keywords:
Latin America, economic growth, regional development, enterprises, economic integrationAbstract
Entrepreneurship is recognized as an activity capable of generating employment, innovation and economic growth. There are multiple and diverse factors that affect it, among which both formal and informal institutions stand out. Its study is particularly relevant in Latin America, given the strong presence of micro, small and medium enterprises; however, the territorial breadth and heterogeneity of the region makes it difficult to make representative generalizations. For this reason, the effect of institutions on entrepreneurship (by opportunity and necessity) was analyzed in a group of countries of the Southern Common Market (Mercosur), one of the most important integration processes in Latin America, through the estimation of a random effects panel data model. It was found that, during the period 2002-2017, informal institutions had a greater effect on entrepreneurship than formal ones. This situation poses an additional challenge for the region, since the promotion of entrepreneurship as a means of economic growth requires structural changes in cultural and social aspects, the achievement of which is neither simple nor immediate.
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