Do corruption and regulations matter for home country nascent international entrepreneurship?

Abstract

We examine the influence of corruption and regulatory environment on the home country entrepreneurship level. Using data from 54 countries from 2005 to 2011, we find that corruption does not have a consistent negative influence on home country nascent international entrepreneurship. With regards to regulations, administrative regulations have different influence than regulations that have financial implications. Tax related regulations do not have any significant influence in high corrupt countries. The results of our study also show that regulation and corruption interact uniquely with nascent internationals in the home country. The results of our study hold several robustness checks.