We analyze theoretically and empirically the impact of the shadow economy onentrepreneurial entry, utilising 1998-2005 individual-level Global Entrepreneurship Monitordata merged with macro level variables. A simple correlation coefficient suggests a positivelinear link between the size of the...

The transition economies have lower rates of entrepreneurship than are observed in mostdeveloped and developing market economies. The difference is even more marked in thecountries of the former Soviet Union than those of Central and Eastern Europe. We link thesedifferences partly with the...