# name
Does decentralization affect local entrepreneurial capacity?

# metadata.dc.description.abstract[].value
In recent decades, decentralization has become a prominent topic in both academic and political discussions, with research increasingly focusing on its implications for economic development. This paper explores a specific facet of this debate by examining how decentralization influences business creation and the survival of new enterprises at the local level. By leveraging a panel dataset covering regions across multiple countries, we assess whether decentralization promotes entrepreneurship and sustains new businesses, particularly through the mediating role of institutional quality. Our findings suggest that while decentralization encourages business creation, it may reduce short-term firm survival rates. Additionally, strong institutional quality seems to amplify decentralization's positive effect on entrepreneurship and mitigate its adverse impact on the survival rate.

# metadata.dc.publisher[].value
Universitat de Barcelona. Facultat d'Economia i Empresa

# metadata.dc.source[].value
Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

# metadata.dc.title[].value
Does decentralization affect local entrepreneurial capacity?