International financial integration and entrepreneurship
By: Laura Alfaro, Andrew Charlton
Contributors: Charlton, Andrew (Andrew Henry George), 1978-; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 07-012; Working paper (Harvard Business School. Division of Research) -- 07-012
Publisher: Division of Research, Harvard Business School
Published: 2006
Place of publication: Boston]
Language: eng
Number of pages: 34
Description: We explore the relation between international financial integration and the level of entrepreneurial activity in a country. Using a unique data set of approximately 24 million firms in nearly 100 countries in 1999 and 2004, we find suggestive evidence that international financial integration has been associated with higher levels of entrepreneurial activity. Our results are robust to using various proxies for entrepreneurial activity such as entry, size, and skewness of the firm-size distribution; controlling for level of economic development, regulation, institutional constraints, and other variables that might affect the business environment; and using different empirical specifications. We further explore various channels through which international financial integration can affect entrepreneurship (a foreign direct investment channel and a capital/credit availability channel) and provide consistent evidence to support our results.
Notes: "August 2006"--Added t.p.

Includes bibliographical references.