Journal Article

Unemployment and New Business Formation – New Insights into a Complex Relationship

Applied Economics Letters, 25(8): 523-526

The article analyses the interrelation between unemployment and new business formation using panel data for a large cross-section of countries. We find robust evidence for a positive influence of unemployment, domestic credit to the private sector and business-friendly regulation on new business formation. Our examination does, however, indicate no support for the view that new business formation significantly reduces national unemployment rates.


Andrea Vaona