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Cultural hysteresis, entrepreneurship and economic crisis

Angelis, Vassilis; Tubadji, Annie; Nijkamp, Peter; Angelis, Vasilis

Authors

Vassilis Angelis

Peter Nijkamp

Vasilis Angelis



Abstract

© 2016 The Author 2016. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved. Entrepreneurship has been advocated as one of the major solutions for coping with (youth) unemployment in Europe during the recent economic downturn. Entrepreneurial activity is generally co-determined by economic and cultural factors. However, cultural change normally requires a much longer time to take place than economic changes do. This may prompt a so-called cultural hysteresis effect in the efficiency of entrepreneurial incentives. To analyze these effects, data from the Global Entrepreneurship Monitor (2003-2010) are used. A Two-Stage Least Square instrumental variable and a logit model with difference-in-differences are employed. We find that the cultural hysteresis is less prominent among Mediterranean countries. Moreover, it is almost negligible in the response to incentives by female youth.

Citation

Angelis, V., Tubadji, A., Nijkamp, P., & Angelis, V. (2016). Cultural hysteresis, entrepreneurship and economic crisis. Cambridge Journal of Regions, Economy and Society, 9(1), 103-136. https://doi.org/10.1093/cjres/rsv035

Journal Article Type Article
Acceptance Date Dec 14, 2015
Online Publication Date Feb 19, 2016
Publication Date Mar 1, 2016
Publicly Available Date
Journal Cambridge Journal of Regions, Economy and Society
Print ISSN 1752-1378
Electronic ISSN 1752-1386
Publisher Oxford University Press (OUP)
Peer Reviewed Peer Reviewed
Volume 9
Issue 1
Pages 103-136
DOI https://doi.org/10.1093/cjres/rsv035
Keywords hysteresis, persistence, risk preferences, uncertainty, local disparities
Public URL https://uwe-repository.worktribe.com/output/913687
Publisher URL https://doi.org/10.1093/cjres/rsv035