Institutional factors, religiosity, and entrepreneurial activity: A quantitative examination across 85 countries

Abstract Given the ongoing debate on the relationship between institutions and entrepreneurship, this study aims to better understand the joint effects of two country-level formal institutions, government effectiveness and political freedom, and whether the informal institution of religiosity moderates this relationship. To achieve this goal, the current study used multiple datasets, including the Global Entrepreneurship Monitor (GEM), World Governance Indicators (WGIs), and the WIN-Gallup International Global Index of Religiosity and Atheism. The data cover 85 countries from 2010 to 2017. The results suggest that the rate of entrepreneurial activity across nations is shaped by the interplay between formal and informal institutions.