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Bilateral investment treaties and entrepreneurship: a social network analysis

International Entrepreneurship and Management Journal

Published online on

Abstract

{"p"=>"In this paper, we empirically investigate the effects of bilateral investment treaties (BITs) on entrepreneurship through the lens of social network analysis (SNA), focusing on two key network characteristics: centrality and brokerage. We begin by developing a set of hypotheses regarding how a country’s position within the BIT network influences entrepreneurial activity. These hypotheses are tested using a panel dataset of 102 countries from 2006 to 2018. We also examine how these relationships are moderated by economic development and trade integration and whether they vary across different types of entrepreneurship—including formal vs. informal, male vs. female, and domestic vs. international entrepreneurship. Our findings indicate that centrality has a positive effect on entrepreneurship, whereas brokerage has a negative influence. Moreover, both economic development and trade integration are found to weaken these effects. We also observe differential impacts of the BIT network structure across the various entrepreneurship subgroups."}