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The formation of new firms: An ordered probit model approach for Latin American and Caribbean Countries

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  • Vélez Ospina, Jorge Andres
  • Campo Robledo, Jacobo

Abstract

The purpose of this paper is to identify the factors that affect the creation of new firms in Latin American countries. We take into consideration economic, political, social and technological factors which should also help governments realize the areas that we found to have the greatest impact. The study relies on data from international organizations from which we construct an Ordered Probit model. The results indicate that credit and government effectiveness enhance the probability of generating new business but it depended of business density

Suggested Citation

  • Vélez Ospina, Jorge Andres & Campo Robledo, Jacobo, 2014. "The formation of new firms: An ordered probit model approach for Latin American and Caribbean Countries," MPRA Paper 60466, University Library of Munich, Germany, revised 2014.
    • Handle: RePEc:pra:mprapa:60466
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    References listed on IDEAS

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    More about this item

    Keywords

    Business density; Orderet Probit; Institutional;
    All these keywords.

    JEL classification:

    • L00 - Industrial Organization - - General - - - General

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