Journal of Knowledge Management, Economics and Information Technology

Using an unbalanced panel data set covering 98 countries and the period 2004-2012, this paper aims to ascertain the extent to which the governmental, globalization and governance factors affect the formal business start-ups.
We represent government by formal constraints to starting a new business while KOF indices that measure the economic, social and political dimensions of globalization are the proxies for globalization. Governance indicators are those of the World Bank’s well-known six worldwide governance clusters.
Moreover, we include unemployment rate in the model to control for macroeconomic stability and business cycle effects. Panel regression results reveal that formal procedures hamper the business start-ups in all country groups while unemployment has negative impacts for the global panel and high-income countries.
Globalization indicators, except economic globalization, have no significant effect and the influence of governance varies among its dimensions and country groups. Overall findings infer that people who start their businesses need a credible government that makes the things easier without any political pressures, but not that regulatory monitoring, controlling and directing the business environment strictly.

  Government, Globalization and Governance Impacts on Business Start-ups: Evidence from a Classified Panel Data Analysis (745.2 KiB, 2,053 hits)

This paper analyzes the effects of knowledge spillovers and complexity proxies on the economic growth using the pooled mean group estimator and annual dataset of 86 countries for the period of 1995-2011. Differently, we cluster countries into five groups by development stages, according to the key drivers of their economies. To this end, along with the conventional determinants, we also added foreign direct investment inflows as proxy of potential knowledge spillovers, and economic complexity index that represents overall capabilities of the economy to amass the knowledge and deepen the technology. Results affirm that long-run relationships vary substantially across the country groups. Complexity contributes to the growth most for the countries that are moving into innovation-driven stage while innovation-driven economies seem to have already faced negative consequences of complexity. Adverse effects of FDI inflows indicate possible resource-seeking activities and crowding-out effects for resource-driven and efficiency-driven countries, respectively.

  Knowledge, Complexity and Economic Growth: Multi-country Evidence by Development Stages (806.4 KiB, 1,953 hits)