National Business Regulations and City Entrepreneurship in Europe: A Multilevel Nested Analysis

Author:

Audretsch David B.1,Belitski Maksim2,Desai Sameeksha1ORCID

Affiliation:

1. School of Public and Environmental Affairs, Indiana University Bloomington, Bloomington, IN, USA

2. Henley Business School, University of Reading, Whiteknights campus, Reading, UK

Abstract

This article provides and tests a theoretical framework with a multilevel (country–city) nested model to analyze the relationship between national business regulations (NBRs) and city level entrepreneurship. While public interest theory predicts a positive relationship between NBR and city level entrepreneurship, public choice theory predicts the opposite, a negative relationship. Based on multilevel analysis for a matched country–city panel of 228 cities across 20 European countries for the years 2004 to 2009, the empirical evidence from panel data estimation explains how changes in NBRs influence changes in city level entrepreneurial activity over time.

Publisher

SAGE Publications

Subject

Economics and Econometrics,Business and International Management

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