Do Government Private Subsidies Crowd Out Entrepreneurship?
Although several studies have found a negative relationship between government spending and entrepreneurship, much debate remains regarding the components of government spending responsible for this association. This paper contributes to the litera...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/06/19654201/government-private-subsidies-crowd-out-entrepreneurship http://hdl.handle.net/10986/18762 |
| Summary: | Although several studies have found a
negative relationship between government spending and
entrepreneurship, much debate remains regarding the
components of government spending responsible for this
association. This paper contributes to the literature by
specifically exploring the relationship between government
private subsidies and entrepreneurship. By combining
macroeconomic government spending data with individual level
entrepreneurship data, the paper finds a negative
association between the share of private subsidies and
entrepreneurship. However, findings are less straightforward
when the analysis delves deeper into the components of
private subsidies and their association with different kinds
of entrepreneurship. |
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