Abstract
Does entrepreneurship in a country benefit from trade integration? Moreover, do all types of entrepreneurs respond the same way to this integration? Specifically focusing on formal and informal entrepreneurship, we analyze the effects of trade integration in the context of different levels of economic development. First, we propose that trade integration increases a country’s formal entrepreneurship while decreasing a country’s informal entrepreneurship. A key mechanism explains this relationship: trade agreements provide supranational institutional structures that encourage formal, and discourage informal, venture creation. We dig deeper into this issue by arguing that these effects are stronger in less developed countries than highly developed countries. Analyses using a panel of 68 countries spanning 11 years provide robust support for these assertions. While our findings are aligned with previous scholarship that describes the asymmetric benefits of trade agreements for member nations, we add refinement by teasing out where the impacts are strongest (e.g., for entrepreneurial formalization in less developed countries) and where the impacts are less pronounced (e.g., for entrepreneurial formalization in highest developed countries). Thus, as policy makers continue to face challenging questions related to trade relationships, these results prompt future scholarship to examine other such potential benefits and asymmetries.
Résumé
L’entrepreneuriat dans un pays bénéficie-t-il de l’intégration commerciale? De plus, tous les types d’entrepreneurs répondent-ils de la même manière à cette intégration? En nous concentrant spécifiquement sur l’entrepreneuriat formel et informel, nous analysons les effets de l’intégration commerciale dans le contexte de différents niveaux de développement économique. Premièrement, nous proposons que l’intégration commerciale accroît l’entrepreneuriat formel d’un pays tout en diminuant l’entrepreneuriat informel d’un pays. Un mécanisme clé explique cette relation: les accords commerciaux fournissent des structures institutionnelles supranationales qui encouragent la création d’entreprises formelles et découragent la création d’entreprises informelles. Nous approfondissons cette question en argumentant que ces effets sont plus forts dans les pays moins développés que dans les pays fortement développés. Les analyses effectuées sur un panel de 68 pays sur 11 ans apportent un soutien solide à ces affirmations. Alors que nos résultats sont alignés sur les études précédentes qui décrivent les avantages asymétriques des accords commerciaux pour les pays membres, nous ajoutons des précisions en indiquant où les impacts sont les plus forts (par exemple pour la formalisation de l’entrepreneuriat dans les pays moins développés) et où les impacts sont moins prononcés (par exemple pour la formalisation entrepreneuriale dans les pays les plus développés). Ainsi, alors que les décideurs politiques continuent d’être confrontés à des questions difficiles liées aux relations commerciales, ces résultats incitent les futures recherches à examiner d’autres avantages et asymétries potentiels.
Resumen
¿El emprendimiento en un país se beneficia de la integración comercial? Así mismo, ¿responden todos los tipos de emprendedores de la misma manera a esta integración? Específicamente enfocándonos en emprendimientos formales e informales, analizamos los efectos de la integración comercial en el contexto de diferentes niveles de desarrollo económico. Primero, proponemos que la integración regional aumenta el emprendimiento formal de un país y, al mismo tiempo, reduce el emprendimiento informal. Un mecanismo clave explica esta relación: los acuerdos comerciales proporcionan estructuras institucionales supranacionales que fomentan la creación de empresas formales y desestimulan las informales. Profundizamos sobre este asunto al exponer que estos efectos son más fuertes en países menos desarrollados que en países altamente desarrollados. Los análisis, basados en un panel de 68 países que abarca 11 años, son consistentes con estas aseveraciones. Si bien nuestros hallazgos están alineados con el conocimiento académico previo que describe los beneficios asimétricos de los acuerdos comerciales para los países miembros, contribuimos explicando donde son los impactos más fuertes (por ejemplo, para la formalización emprendedora en países menos desarrollados) y donde los impactos son menos pronunciados (por ejemplo, para la formalización emprendedora en países altamente desarrollados). Por lo tanto, a medida que los formuladores de políticas públicas continúen enfrentando retos con respecto a las relaciones comerciales, estos resultados darán lugar a futuras investigaciones académicas sobre otros beneficios potenciales y asimetrías.
Resumo
O empreendedorismo em um país se beneficia da integração comercial? Além disso, todos os tipos de empreendedores respondem essa integração da mesma forma? Com foco específico no empreendedorismo formal e informal, analisamos os efeitos da integração comercial no contexto de diferentes níveis de desenvolvimento econômico. Em primeiro lugar, propomos que integração comercial aumenta o empreendedorismo formal em um país enquanto diminui o empreendedorismo informal do país. Um mecanismo chave explica essa relação: acordos comerciais fornecem estruturas institucionais supranacionais que incentivam a criação de empreendimentos formais e desencorajam a criação de empreendimentos informais. Investigamos mais profundamente essa questão argumentando que esses efeitos são mais fortes em países menos desenvolvidos do que em países altamente desenvolvidos. Análises usando um painel de 68 países ao longo de 11 anos fornecem suporte robusto para essas afirmações. Embora nossas descobertas estejam alinhadas com estudos anteriores que descrevem os benefícios assimétricos de acordos comerciais para países membros, refinamos ao identificar onde os impactos são mais fortes (por exemplo, para formalização de empreendimentos em países menos desenvolvidos) e onde os impactos são menos pronunciados (por exemplo, para a formalização de empreendimentos em países mais desenvolvidos). Assim, enquanto formuladores de políticas continuam a enfrentar questões desafiadoras relacionadas a relações comerciais, esses resultados estimulam estudos futuros para examinar outros benefícios e assimetrias potenciais.
摘要
一个国家的创业会从贸易一体化受益吗?此外, 所有类型企业家对这种一体化是否有相同的反应?我们特别关注正式和非正式创业, 我们分析了不同经济发展水平情境里的贸易一体化的影响。首先, 我们提出, 贸易一体化提升国家的正式创业, 同时减少国家的非正式创业。一个关键机制解释了这里面的关系: 贸易协定提供了超国家的鼓励正式而不鼓励非正式创业的制度结构。我们对该问题进行了深挖, 认为这些影响在欠发达国家要强于发达国家。对68个国家跨越11年的面板数据的分析为这些主张提供了有力的支持。尽管我们的发现与先前的研究所描述的贸易协定对成员国的非对称收益相吻合, 我们通过梳理出哪里是影响最大的地方(例如欠发达国家里的创业正规化)和哪里是影响不那么明显的地方(例如在最发达国家里的创业正规化)对文献进行了提炼。因此, 随着政策制定者继续面临与贸易关系有关的挑战性问题, 这些结果促使今后去研究其它潜在益处和不对称性。
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ACKNOWLEDGEMENTS
We thank the editors Arjen van Witteloostuijn and Alain Verbeke, as well as the anonymous reviewers for their supportive feedback on this article. We are also very grateful for the support of Bettina Alvarez Canelon, Alyssa Cecchetelli, Ania Palka Dau, Larissa Marchiori Pacheco, Karen Moore, Gary Moore, and various conference participants. This article is based on the dissertation and doctoral work and data collection efforts of the first author, and thus builds on and is related to other projects, some of which we cite appropriately (for example Moore, Brandl, & Dau, 2019; Moore, Dau, & Doh, 2020), and others which are under review and we therefore do not cite to maintain the integrity of the double-blind review process. The following sources supplied indispensable financial assistance for this research project: Northeastern University’s Global Resilience Institute and Robert and Denise DiCenso Professorship, University of Reading Henley Business School’s Dunning Visiting Fellowship, University of Leeds Business School’s Buckley Visiting Fellowship, and ANID / CONICYT FONDECYT Regular 1181764. All errors remain our own.
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Accepted by Arjen vanWitteloostuijn, Area Editor, 22 September 2020. This article has been with the authors for two revisions.
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Moore, E.M., Dau, L.A. & Mingo, S. The effects of trade integration on formal and informal entrepreneurship: The moderating role of economic development. J Int Bus Stud 52, 746–772 (2021). https://doi.org/10.1057/s41267-020-00386-y
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DOI: https://doi.org/10.1057/s41267-020-00386-y