Italy’s business sector claims that the corporate tax rates are uncompetitive and affect negatively creation of new enterprises. At the same time, robust empirical analysis shows that (a) formal and informal institutions are key factors in occupational choices and entrepreneurship and (b) entrepreneurship is a fundamental driver of growth. In this paper, we exploit different data sources to assess the relative impact of institutions and business tax system on new firms’ creation and entrepreneurial selection at provincial level. Our results suggests the quality of institutions has a greater effect on new business entry than corporate taxation.
Entrepreneurial Entry and Institutions: A Case Study for Italy
Valentino Parisi
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2021-01-01
Abstract
Italy’s business sector claims that the corporate tax rates are uncompetitive and affect negatively creation of new enterprises. At the same time, robust empirical analysis shows that (a) formal and informal institutions are key factors in occupational choices and entrepreneurship and (b) entrepreneurship is a fundamental driver of growth. In this paper, we exploit different data sources to assess the relative impact of institutions and business tax system on new firms’ creation and entrepreneurial selection at provincial level. Our results suggests the quality of institutions has a greater effect on new business entry than corporate taxation.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
