International financial integration and entrepreneurship
By: Laura Alfaro, Andrew Charlton
Contributors: Charlton, Andrew (Andrew Henry George), 1978-; London School of Economics and Political Science. Centre for Economic Performance
Series: CEP discussion paper -- no. 755
Publisher: Centre for Economic Performance, London School of Economics and Political Science
Published: 2006
Place of publication: London
Language: eng
Format: [electronic resource] /
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: Title from publisher's abstract page (viewed on Jan. 4, 2007).

"October 2006."

Includes bibliographical references.

Also available in print.

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