Journal
ENTREPRENEURSHIP THEORY AND PRACTICE
Volume 43, Issue 6, Pages 1148-1165Publisher
SAGE PUBLICATIONS INC
DOI: 10.1177/1042258718774916
Keywords
entrepreneurship; city; government policy; regulation; Europe; multilevel JEL; L26 M13 R10 O17
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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.
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