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Institutions and macroeconomic indicators: entrepreneurial activities across the world

Oğuz Kara (Department of Health Management, Düzce University, Duzce, Turkey)
Levent Altinay (Faculty of Business, Oxford Brookes University, Oxford, UK)
Mehmet Bağış (Department of International Trade and Finance, Sakarya University of Applied Sciences, Sakarya, Turkey)
Mehmet Nurullah Kurutkan (Department of Health Management, Düzce University, Duzce, Turkey)
Sanaz Vatankhah (School of Aviation, Marketing and Tourism, University of Bedfordshire Business School, Luton, UK)

Management Decision

ISSN: 0025-1747

Article publication date: 27 November 2023




Entrepreneurial activity is a phenomenon that increases the economic growth of countries and improves their social welfare. The economic development levels of countries have significant effects on these entrepreneurial activities. This research examines which institutional and macroeconomic variables explain early-stage entrepreneurship activities in developed and developing economies.


The authors conducted panel data analysis on the data from the Global Entrepreneurship Monitor (GEM) and International Monetary Fund (IMF) surveys covering the years 2009–2018.


First, the authors' results reveal that cognitive, normative and regulatory institutions and macroeconomic factors affect early-stage entrepreneurial activity in developed and developing countries differently. Second, the authors' findings indicate that cognitive, normative and regulatory institutions affect early-stage entrepreneurship more positively in developed than developing countries. Finally, the authors' results report that macroeconomic factors are more effective in early-stage entrepreneurial activity in developing countries than in developed countries.


This study provides a better understanding of the components that help explain the differences in entrepreneurship between developed and developing countries regarding institutions and macroeconomic factors. In this way, it contributes to developing entrepreneurship literature with the theoretical achievements of combining institutional theory and macroeconomic indicators with entrepreneurship literature.



Kara, O., Altinay, L., Bağış, M., Kurutkan, M.N. and Vatankhah, S. (2023), "Institutions and macroeconomic indicators: entrepreneurial activities across the world", Management Decision, Vol. ahead-of-print No. ahead-of-print.



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