State-Based Conflict and Entrepreneurship: Empirical Evidence

Wim Naudé, Ernesto Amorós () and Tilman Brück
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Ernesto Amorós: EGAP Tecnológico de Monterrey CEM

No 15946, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the relationship between state-based conflict and entrepreneurship. From a survey of the existing literature, we formulate two hypotheses: (1) state-based conflict has a negative association with productive and opportunity-motivated forms of entrepreneurship, and (2) a positive association with unproductive and necessity-motivated forms of entrepreneurship. We test these hypotheses by drawing on several state-based conflict and entrepreneurship measures, using appropriate estimators, and employing robustness checks. The evidence supports our hypotheses. Necessity-motivated start-up entrepreneurship is, on average, almost three times higher in countries in conflict than in countries not in conflict. Development level matters. In countries with less unemployment, more finance, and higher levels of physical, human capital and GDP, entrepreneurship is more resilient, and the ratio of female-to-male entrepreneurs in opportunity-motivated entrepreneurship higher.

Keywords: entrepreneurship; conflict; war; small business; employment (search for similar items in EconPapers)
JEL-codes: J23 L26 M13 N40 O11 O17 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2023-02
New Economics Papers: this item is included in nep-ent, nep-gro, nep-lma and nep-sbm
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Working Paper: State-Based Conflict and Entrepreneurship – Empirical Evidence (2023)
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