Thesis Master's thesis in the field of economic sciences
October 2013
Abstract
Although the achievement of economic development should be considered as a result of several factors, but undoubtedly one of the most important factors of its creation can be called entrepreneurship. An element that has been given serious attention as the driving engine of economic growth to create employment and added value in developed countries and is referred to as the most important source of innovation, job creation and development. In such a way that today it is considered one of the development indicators in developing countries.
Using the causality approach, this research examines the institutional factors affecting entrepreneurship in 2 groups of selected oil and non-oil countries in the period of 2008-2012, and the panel data method is used to estimate it. In this model, the dependent variable is the entrepreneurship development index and the explanatory variables include institutional factors. According to the research results, informal institutions such as corruption control and political stability have a positive and significant effect on the development of entrepreneurship in oil-rich countries. In fact, by controlling corruption and promoting political stability in oil-rich countries, entrepreneurial activities can be developed.
1-1- Introduction
Economic development is an ideal vision and goal for most societies. Entrepreneurship also plays a key role as a driving force in shaping this vision (Schumpeter [1], 1934). Existing research shows that the entry of new companies creates a beneficial flow in the economy. This flow of growth, innovation, transformation, economic development, promotion of employment Generating and ensuring more fair distribution of income in the society will follow (Ax, 2010). In this regard, historical experience has also shown that entrepreneurs have an important effect on economic activities at the national and local levels, and by expanding and creating them at the regional level, they increase local wealth and income, provide the connection of local economies with larger economies and the global economy (Henderson [2], 2002).
Reynolds [3] and his colleagues (1999) show It has been reported that one-third of the growth rate of the national economy is caused by differences in entrepreneurial activities. Also, Zachareks [4] (2000) has shown by studying 16 developed economies that entrepreneurial activities account for almost half of the differences in GDP growth between countries. Studies by the Global Entrepreneurship Monitor [5] (GEM) have also shown, by examining entrepreneurial activity in countries with different levels of economic development, that entrepreneurial force is a factor affecting the per capita income of countries (Bosma et al. [6], 2005).
Therefore, in Iran and with the aim of increasing the number of entrepreneurial events (stimulating the level of entrepreneurial activity), educational programs and entrepreneurship research and creation of growth and entrepreneurship centers, programs such as the "Employment Impact Plan" and "company plan" have been implemented; But the available evidence of the current economy of our country indicates the emergence of disturbances in the field of the national economy. The results of the review of the economic code project carried out by the Iranian Tax Affairs Organization (2008) show that the activity of only about 30% of the registered companies was in the form of this project, and in other words, the other 70% are either not active or engage in economic activity through informal and possibly non-productive channels [7]. It should be noted that such activities can impose heavy costs on the country's economic system. What is certain is that entrepreneurship does not occur in a vacuum and environmental factors are effective in the emergence of entrepreneurship. Institutions are considered as one of the important environmental elements that encourage or limit entrepreneurial behavior by government interventions and social factors (Torik, 2007). Institutional arrangements can encourage productive or unproductive or even destructive businesses by creating the motivational structure of society (Bamol, 1991). are entrepreneurial activities in the country (North, 1994).When the institutions are "weak" It is possible that entrepreneurs will not be burdened with new projects, or instead, they may spend their energy on non-productive projects, which will lead to a decrease in economic efficiency for the whole society (Glasser et al. [8], 2004). Therefore, if the development of entrepreneurship is considered as an approach to economic development, it is necessary to pay attention to the environmental differences and specific motivational structures of each society, which are the result of the institutions of that society, and after recognizing the relevant effects, provide a solution for its development.
1-2- Statement of the problem Research conducted by two scientists Douglas North (1990, 1994, 1997, 2005) and William Bamol (1990, 1993, 2003) has shown that there is a direct relationship between the institutional environment and the development of entrepreneurship; Therefore, the policy makers who are looking for the development of entrepreneurship to achieve economic development, should not only evaluate and measure the policies that lead to the improvement of the level of entrepreneurial activities (increasing the number of entrepreneurial events [9]), but more importantly, they should evaluate the policies based on the type of activities undertaken by members of the society. They can pay. According to the institutionalism approach, entrepreneurship and the business environment necessarily have a mutual relationship (Shin[10], 2003).
For the development of entrepreneurship, what is of special importance is to pay attention to the factors that can affect it, and in the meantime, identifying and examining various institutional factors that affect entrepreneurship can be used in planning and policies. Kalan has an effective role to promote entrepreneurial activities. Institutional factors can be the rule of law, political instability, regulatory barriers, corruption control, securing property rights, political freedom, commenting and accountability, financial and non-financial support (provision of credits), business and entrepreneurship skills, etc. It was classified (Alvarez et al., 2011).
In the literature of institutionalism, institutions are divided into two groups: formal institutions and informal institutions. Informal institutions have more complexity, variety and durability than formal institutions. According to the existing definitions, informal institutions include informal rules, customs, social and cultural norms, and such things. Formal institutions in the form of political, legal and executive institutions include the executive, legislative and judicial system as well as the set of official rules and laws of the country (North, 1994).
The entrepreneurial space is influenced by two spectrums:
1- Formal institutions
2- Informal institutions
These two spectrums of institutions provide incentives or create Limitations shape the structure of entrepreneurial activities. This framework includes a number of organizational institutions, processes and incentives. In general, considering the positive effect of entrepreneurial activities on economic development, this research intends to investigate the effect of political stability, control Corruption, opinion and accountability, government efficiency, rule of law and quality of legislation as institutional variables affecting the development of entrepreneurial activities, to evaluate the similarities and differences of these effects in selected oil and non-oil countries. The panel data method is used to estimate the model, and the dependent variable of this model is the total entrepreneurial activity index[11] and the explanatory variables include institutional factors. and also "institutional environment of entrepreneurship" It pays in member countries. Therefore, this research aims to use the Total Entrepreneurship Activity (TEA) data obtained from the Global Entrepreneurship Monitor (GEM) to evaluate the total entrepreneurship index. The data are related to 2 groups of countries including oil and non-oil countries in the period of 2008-2012.
1-3- The importance and necessity of conducting research
For a country to have people who can recognize valuable business opportunities and imagine that they have the necessary skills to extract such opportunities. It is very important. By improving the quantity and quality of economic outputs, these people accelerate the society's movement towards development.