Exploring the Entrepreneurial Society
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Exploring the Entrepreneurial Society

Institutions, Behaviors and Outcomes

Edited by Jean Bonnet, Marcus Dejardin and Domingo García-Pérez-De-Lema

Entrepreneurship is the engine of economic development, which in turn impacts upon the challenges facing future entrepreneurs. This timely book explores institutional, behavioural and policy issues of primary importance to understanding the entrepreneurial society. Topics covered include entrepreneurship in relation to formal and informal institutions; entrepreneurial choice, orientation and success; entrepreneurial behaviours; entrepreneurial finance, growth and economic crises; and entrepreneurship, social dimensions and outcomes.
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Chapter 5: Institutions, entrepreneurship, and regional growth in Indonesia (1994–2010)

François Facchini and Subandono .

Abstract

François Facchini and Subandono contribute to the modern Austrian theory of economic development by elaborating an original theory of institutional flexibility. An institutional system is flexible when it constructs an order that is neither contingent nor determinist. Private property rights, contracts and money organize human behaviour without determining it. By protecting economic freedom, these institutions give people good reason to believe that they can act to change the future to their advantage. Exploiting Indonesian provincial panel data for the period 1994–2010, the authors collect evidence to support their proposed theoretical framework.

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