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Small Business Economics

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16-06-2020

The entrepreneurial gains from market integration in the new EU member states

Authors: Nebojša Stojčić, Ivan-Damir Anić, Tonći Svilokos

Published in: Small Business Economics | Issue 3/2021

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Abstract

This paper investigates the impact of economic integrations on entrepreneurial outcomes. The study bridges a gap between the literature on entrepreneurship and trade by exploring how international trade and global value chain (GVC) integration influence the share of start-ups and high-growth firms in manufacturing industries in eleven Central and Eastern European (CEE) member states of the European Union (EU) during the 2011–2016 period. Exports, imports, and forward GVC participation increase the share of start-ups and high-growth firms, and these effects are evident in low- and high-technology-intensive industries. The effects of trade and GVC integration are more pronounced among the first group of CEE that joined the EU than among latecomers.

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This finding is particularly relevant since our baseline models yielded insignificant coefficient on impact of forward participation in EU-13 value chains on entry share but inclusion of interaction term with technological intensity makes both variables highly statistically significant. Printouts available on request.

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Title: The entrepreneurial gains from market integration in the new EU member states
Authors: Nebojša Stojčić
Ivan-Damir Anić
Tonći Svilokos
Publication date: 16-06-2020
Publisher: Springer US
Published in: Small Business Economics / Issue 3/2021
Print ISSN: 0921-898X
Electronic ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-020-00363-7

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