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The Effect of Public Policy on Firm Birth Rate as Entrepreneurship
논문 기본 정보
- 저자정보
- 발행연도
- 2007.11
- 수록면
- 1,195 - 1,202 (8page)
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The Effect of Public Policy on Firm Birth Rate as Entrepreneurship
초록·키워드
SME and entrepreneurship policy makers which got faced with economic crisis wonder which policy is the first to be implemented and what is the later. There have been many studies for the relationship between entrepreneurship and public policy, but most studies fall short of cross-country analysis and focus on comparing entrepreneurship and one field of public policy – tax, labor, financial system, education, etc. -. This study aims to propose which factors of public policy affect on entrepreneurship mostly. Therefore, I examine the relationship, across 27 countries, between public policy, not just one field, and firm birth rate using linear regression model. This paper conducts analysis with OECD annual data from 1998 to 2004 about public policy and firm birth rate. I select 75 independent variables from OECD databases – Finance, National Accounts, Labor, Demography and Population, Science · Technology and Patents and Public Sector · Taxation and Market Regulation -. Then, the baseline model is obtained based on 75 independent variables. To obtain an overall picture and meaningful factor we computed regressions, each time adding one variable to the baseline model. As a result, I build a complete multivariate model. Subsequently I include an 'developed country' dummy in the model to observe the group effect of developed and developing country. I find that baseline model include trend factor and 9 independent variables. That is, long-term interest rate, government expenditure on economic affairs, unit labor cost, hourly earnings, public expenditure on labor market programs, personal income tax, corporate income tax, average wage, etc. affect on firm birth rate. Among them, corporate income tax rate and unit labor cost are the most effective variable on firm birth. The results of this paper contribute to analysis the effect of public policy that primarily affect entrepreneurship on new firm formation and also Entrepreneurship indicator project held on Entrepreneurship Expert Workshop, OECD.
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UCI(KEPA) : I410-ECN-0101-2014-530-001439427
