In this study, we aim to assess the relevance of credit composition to entrepreneurship empirically in light of the Schumpeterian perspective. The results of such an analysis can imply whether central banks should continue with the so-called neutrality principle or undertake an active credit...

Using a survey based on 1,965 enterprise initiations in China, we provide causal evidence that businesses launched in credit-ease years are 7.29% more likely to fail. The result is unlikely to be driven by the “imprinting effect” or the “cohort effect”. Nevertheless, we find the effect...

This paper explores the impact of credit market on the entrepreneurs and demand for credit in a credit constrained economy and the resultant impact on the capital flows. In standard trade models the capital flows across countries are explained as a result of the rate of return differentials due...

This paper extends Evans and Jovanovic (1989)'s entrepreneurship model to incorporate the informal sector. Specifically, entrepreneurs can operate either in the formal sector - in which they have limited access to credit markets and must pay taxes - or in the informal sector - in which they can...

During 1992-2007, house price growth is strongly correlated with local entrepreneurship. We show with Census Bureau data that most of this entry is related to construction and real estate; these entrants tend to be small and short-lived. Using a 1998 Texas reform that allowed home equity lending...

It has been suggested that the increasing market power of large firms is behind the entrepreneurship decline in several advanced economies. With a focus on Australia, this paper studies whether this has been the case. It uses an index, extracted from Hirschman-Herfindahl and firm population of...