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Entrepreneurship Determinants in Central and Eastern Europe. The Case of Romania

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  • Ionela DUMITRU

    (The Faculty of Business Administration)

  • Ionut DUMITRU

    (Faculty of Finance, Insurance, Banking and Stock Exchange The Bucharest University of Economic Studies)

Abstract

Romania’s level of entrepreneurship was in recent years one of the lowest among Central and Eastern Europe (CEE) and Baltic countries, only higher than in Hungary and Bulgaria. Based on panel data regressions, our estimations show that there are institutional factors which explain why Romania is underperforming. The successful transition economies such as Slovakia, Czech Republic and Poland seem to have almost all the necessary ingredients that are positive for entrepreneurship - regulatory quality, government effectiveness, political stability, control of corruption, voice and accountability, rule of law, and labor market flexibility. The most effective way to increase Romania’s entrepreneurship level will be to improve the weaknesses we identified at the institutional level, as institutional variables are the most significant drivers for entrepreneurship based on our results, and at the same time, their week values seems to be the main explanation why Romania has a low entrepreneurial level.

Suggested Citation

  • Ionela DUMITRU & Ionut DUMITRU, 2017. "Entrepreneurship Determinants in Central and Eastern Europe. The Case of Romania," ECONOMIC COMPUTATION AND ECONOMIC CYBERNETICS STUDIES AND RESEARCH, Faculty of Economic Cybernetics, Statistics and Informatics, vol. 51(1), pages 187-203.
    • Handle: RePEc:cys:ecocyb:v:50:y:2017:i:1:p:187-203
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    References listed on IDEAS

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    Cited by:

    1. Carmen Păunescu & Mihaela Cornelia Popescu & Matthias Duennweber, 2018. "Factors Determining Desirability of Entrepreneurship in Romania," Sustainability, MDPI, vol. 10(11), pages 1-22, October.
    2. Ionela DUMITRU & Ionuţ DUMITRU, 2018. "Drivers of Entrepreneurial Intentions in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 157-166, December.

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    More about this item

    Keywords

    Entrepreneurship; Business Environment; Institutions; Regulatory quality; Rule of Law.;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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