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State-based armed conflict and entrepreneurship: empirical evidence

In: Handbook of Research on Entrepreneurship and Conflict

Author

Listed:
  • Wim Naudé
  • José Ernesto Amorós
  • Tilman Brück

Abstract

This chapter adds to the understanding of 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) state-based conflict has a positive association with unproductive and necessity-motivated forms of entrepreneurship. We test these hypotheses using several measures of state-based armed conflict and entrepreneurship and a range of estimators. Both descriptive and regression statistics support our hypotheses. We also found that countries that suffered state-based armed violence had more non-productive entrepreneurship, were more militarized, and were substantially poorer. Furthermore, productive entrepreneurship was found to recover fast in some post-conflict countries when the intensity of conflict decreases. Finally, the level of development matters for the impact of state-based conflict on entrepreneurship, including the ratio of female to male entrepreneurs.

Suggested Citation

  • Wim Naudé & José Ernesto Amorós & Tilman Brück, 2024. "State-based armed conflict and entrepreneurship: empirical evidence," Chapters, in: Wim Naudé & Bernadette Power (ed.), Handbook of Research on Entrepreneurship and Conflict, chapter 7, pages 106-140, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:21252_7
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    File URL: https://www.elgaronline.com/doi/10.4337/9781802206791.00016
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