The Impact of state Corporate Opportunity Waivers on county entrepreneurial outcomes in the United States

Abstract

Abstract This study examines the impact of corporate opportunity waivers (COWs) on local entrepreneurial initiatives in counties across the United States. Using a reduced-form differences-in-differences approach based on intent-to-treat, we investigate the causal relationship between the phased adoption of COW by states and changes in county-level business applications, establishment activity, and regional entrepreneurial acceleration index (REAI). Using the traditional two-way fixed-effects (TWFE) approach we find that COW increases business applications in early years, followed by establishment activity in later years (t + 3 to t + 5), and increases regional entrepreneurial acceleration index (REAI). However, using Callaway and Sant’ Anna’s approach for testing staggered adoption none of the effects are supported. The findings have implications for regional entrepreneurship literature. JEL Codes: L26; M13; O18; R11; D22