AUTIO, E. and FU, K., 2014. Economic and political institutions and entry into formal and informal entrepreneurship. Asia Pacific Journal of Management, 32 (1), pp. 67-94.
We investigated the influence of economic and political institutions on the prevalence rate of formal and informal entrepreneurship across 18 countries in the Asia-Pacific region during the period 2001–2010. We found the quality of institutions to exercise a substantial influence on both formal and informal entrepreneurship. One standard-deviation increase in the quality of economic and political institutions could double the rates of formal entrepreneurship and halve the rates of informal entrepreneurship. The two types of institutions had a complementary effect on driving entry into formal entrepreneurship, whereas only direct effects were observed for informal entry.
The final publication is available at Springer via http://dx.doi.org/10.1007/s10490-014-9381-0.
This research was supported by the UK Entrepreneurship Research Centre.