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Economic uncertainty and business formation: A cross-country analysis

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  • Tajaddini, Reza
  • Gholipour, Hassan F.

Abstract

The purpose of this study is to explore the long-run relationship between economic uncertainty and new business formation. By applying panel ARDL/PMG and dynamic fixed-effects models for three samples of countries over the period of 2006–2018, our results show that higher levels of economic uncertainty have an adverse relationship with the new business formation in the long-run. Our findings are robust with the inclusion of control variables, different estimation methods, and alternative measures of economic uncertainty.

Suggested Citation

  • Tajaddini, Reza & Gholipour, Hassan F., 2021. "Economic uncertainty and business formation: A cross-country analysis," Journal of Business Venturing Insights, Elsevier, vol. 16(C).
    • Handle: RePEc:eee:jobuve:v:16:y:2021:i:c:s2352673421000524
    DOI: 10.1016/j.jbvi.2021.e00274
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    2. Păunescu Carmen & Argatu Ruxandra & Matyus Eniko, 2023. "Socio-Economic Wellbeing and behavior at School or Work To what Extent are They Related? Evidence from Romania," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 17(1), pages 853-863, July.
    3. TAKAHASHI Hidenori & YAMAKAWA Yasuhiro, 2022. "The Effect of Uncertainty on Entrepreneurial Activity," Discussion papers 22064, Research Institute of Economy, Trade and Industry (RIETI).
    4. Gnangnon, Sèna Kimm, 2023. "Duration of membership in the world trade organization and investment-oriented remittances inflows," The Quarterly Review of Economics and Finance, Elsevier, vol. 88(C), pages 258-277.
    5. Morales-Solis, Juan Carlos & Barker III, Vincent L. & Cordero, Arkangel M., 2023. "CEO's industry experience and emerging market SME performance: The effects of corruption and political uncertainty," Journal of Business Venturing Insights, Elsevier, vol. 20(C).

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