Relationship Between State Legitimacy, Economic Policy Uncertainty, and Entrepreneurship

Empirical Evidence From Europe

Bibliographic Data

ID7571372
AuthorsJessica Paule-Vianez (0000-0001-8918-582X, Rey Juan Carlos University, Madrid, Spain), Antonio Portillo-Fernández (0000-0002-2891-4993, Universidad de Extremadura), Antonio Fernández-Portillo (University of Extremadura, Cáceres, Spain), Giorgia Miotto (0000-0002-0973-6597, Ramon Llull University, Barcelona, Catalonia, Spain), José Luis Coca-Pérez (University of Extremadura, Cáceres, Spain, corresponding author)
Year2024
Volume68
Issue1
Pages142-162
Publication date2024-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAmerican Behavioral Scientist (JOURNAL)
Journal identifiersISSN: 0002-7642 • E-ISSN: 1552-3381
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/00027642231191750
OpenAlexW4385659468
LanguageEN
References cited86

This study aims to analyze the relationships between economic policy uncertainty (EPU), state legitimacy, entrepreneurial activity, and business opportunities. To achieve this goal, 13 European countries are selected for the period 2002 to 2018. Applying partial least squares structural equation modeling, relevant findings were obtained. The results show that higher economic uncertainty is associated with an increase in a country’s entrepreneurial activity, although the perception of entrepreneurial opportunities does not increase. We also observed an inverse relationship between EPU and legitimacy. A higher perception of legitimacy is related to lower entrepreneurial activity and higher opportunities for entrepreneurship. These findings have relevant implications. From the academic point of view, the results make new contributions to research related to the importance of the institutional context and entrepreneurial activity, considering the relationships between EPU and legitimacy and their influence on entrepreneurial activity. We also highlight how policymakers may influence the perception of state legitimacy and, therefore, have an impact on entrepreneurial activities and opportunities

Context (archaeology) · Economic system · Economics · Entrepreneurship · Legitimacy · Perception · Political science · Politics · State (computer science) · Structural equation modeling · Energy, Environment, Economic Growth · Innovation Policy and RD · Market Dynamics and Volatility · Psychology

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