Emanuel Xavier-Oliveira

What motivates entrepreneurial entry under economic inequality? The role of human and financial capital

Based on a multilevel analysis of nearly 120,000 observations across 31 countries between 2001 and 2008, we provide novel insights into the moderating effects that economic inequality may have on the distinct roles that human and financial capital play on different types of entrepreneurship. As inequality increases, both forms of capital become weaker deterrents of entry into necessity entrepreneurship, whereas for opportunity entrepreneurship, only financial capital becomes a stronger predictor of entry. We also show that, regardless of inequality levels, both human and financial capital exhibit decreasing marginal returns on the likelihood of entry into necessity entrepreneurship, and that in the case of opportunity entrepreneurship, financial capital exhibits increasing marginal returns. However, inequality does impact the magnitude of marginal returns. Additionally, our statistical analysis provides quantitative support to extant literature arguing that higher levels of economic inequality foster both types of entrepreneurship albeit having a stronger impact on necessity entrepreneurship, and that human and financial capital have distinct effects on entry into necessity versus opportunity entrepreneurship. All these findings have pertinent policy implications and shed light on the under-researched role of inequality on entrepreneurship.

Inbound foreign direct investment and domestic entrepreneurial activity

There is an interesting and lively debate going on in the academic literature intersecting trade policy and entrepreneurship. Several studies have shown that inbound foreign direct investment (FDI) has a negative effect on rates of entrepreneurship, while others find the opposite – a higher rate of new firm creation associated with increased inbound FDI. We study the phenomenon using a cross-country analysis of data on entrepreneurs from 38 countries and from 2001 to − 2008. Results indicate that inbound FDI has negative associations with five types of entrepreneurship (nascent, new, early-stage, established, and high-growth) measured by the Global Entrepreneurship Monitor survey. In our discussion, we argue that our study supports the contention that studies counting new limited liability company registrations do not always measure the same thing as entrepreneurial entries (self-reports), leading to different, even opposite results when subjected to empirical analysis.

A Multi-Level Empirical Study of Ethnic Diversity and Shadow Economy as Moderators of Opportunity Recognition and Entrepreneurial Entry in Transition Economies

Our multi-level model about the relationship between opportunity recognition and entrepreneurial entry in transition economies suggests that ethnic fractionalization along with the size of the shadow economy are moderators of individual-level opportunity recognition. Whereas ethnic diversity increases entrepreneurial entries, a large informal sector appears to decrease them. We also find that opportunity recognition may be a more important predictor of entry when ethnic diversity is low and when the shadow economy is small. Thus, our study contributes to the literature examining the influence of contextual factors on entrepreneurial entry. Succinctly, ethnic diversity can substitute for opportunity recognition, whereas the informal economy increases its importance. Consequently, it appears that ethnic heterogeneity in transition economies may be a valuable driver of entrepreneurial entry even in the absence of opportunity recognition, while the size of the informal economy makes opportunity recognition dearer.

Inward foreign direct investment: Does it enable or constrain domestic technology entrepreneurship?

Whether or not foreign direct investment (FDI) is essential for domestic technological and economic development remains a contentious question. The controversy is illustrated by comparing the Celtic and Asian Tigers experiences from 1995 to 2000. Based on IMF and World Bank data in constant prices, Ireland and China averaged an annual growth rate of 8% in GDP per capita. However, FDI per capita grew at an average pace of 98% per year in Ireland, while in China it decreased by 1% -- absolute values averaged US

Entrepreneurship in Transition Economies: The Role of Corruption and Individual Attributes.

3,397 versus US

The Politics of Intellectual Property Rights Regimes

144, respectively. This suggests that, rather than a one-policy-fits-all approach, customized policies are more appropriate; and, if any generalization can be made, it should be based on a country’s stage of economic development.

Influence of Intellectual Property, Foreign Investment, and Technological Adoption on Technology Entrepreneurship

Corruption has been shown to discourage entrepreneurship in transition economies and previous research corroborates that individual dispositions affect entrepreneurial intentions. It is less clear, however, to what extent individual attributes impact entrepreneurial behaviours in different institutional contexts. Here, we assess the cross-level moderation effect of corruption at the national level and attributes of entrepreneurs at the individual level, on the likelihood of individuals entering into entrepreneurship. Hence, we contribute to the emerging literature examining contextual influences on entrepreneurialism by focusing on transition economies. Our results indicate that self-efficacy, fear of failure and opportunity recognition may be more important determinants of entrepreneurial intentions in less corrupt contexts, whereas ties with other entrepreneurs become more relevant in contexts where corruption is endemic.

The Politics of Intellectual Property Rights Regimes: An Empirical Study of New Technology Use in Entrepreneurship

This study examines interactions between political processes and intellectual property rights regimes that can influence the propensity of early-stage entrepreneurs to employ the latest available t...