Examining the Effects of Government Policies on Entrepreneurship: Evidence from Selected Developing Countries

Document Type : Original Article

Authors

1 MA in Entrepreneurship Management, Faculty of Humanities and Physical Education, Gonbad Kavous University, Gonbad Kavous, Iran

2 Assistant Professor in Economics, Faculty of Humanities and Physical Education, Gonbad Kavous University, Gonbad Kavous, Iran

3 Associated Professor in Economics, Faculty of Humanities and Physical Education, Gonbad Kavous University, Gonbad Kavous, Iran

Abstract

In economic analyses, the confirmed fact is that the policy framework of new and entrepreneurial businesses is different from traditional ones. So, these types of activities require business environment support in addition to conventional public policies. Therefore, using the theoretical model of Acs and Szerb (2007), the main objective of this study is to examine the impact of various government policies (international, fiscal and business environment) on the development of entrepreneurship in selected developing countries based on the World Bank classification, including Iran, in the period 2008-2022, using the panel data method. The research findings for the selected sample indicate that conventional government policies in the international field (foreign trade and foreign direct investment) and in the area of public spending do not have a significant effect on entrepreneurship. However, government expenditures on education and tax policy have a significant effect on entrepreneurship. Most importantly, business environment policies and laws, such as reduction of costs of starting a business, improving labor market efficiency, and promoting property rights, are effective factors in the development of entrepreneurship in developing countries.

Keywords

Main Subjects

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