The relationship between the rule of law and entrepreneurship: A comparative analysis
DOI:
https://doi.org/10.59394/JSM.15Keywords:
Entrepreneurship, the rule of law, high-middle income, high income, entrepreneurial ecosystemAbstract
This paper investigates the relationship between the rule of law and entrepreneurship in upper-middle-income and high-income countries. The panel data is used from a sample of countries from 2014- 2020. The author estimates several econometric models, including pooled OLS, fixed effects, and random effects regressions. The results confirm that the rule of law positively and significantly affects entrepreneurship in upper-middle-income countries. However, it has little effect on entrepreneurship in high-income countries. This suggests that the relationship between the rule of law and entrepreneurship may differ across countries with different income levels and institutional contexts.
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