Economic uncertainty and business formation : a cross-country analysis

The purpose of this study is to explore the long-run relationship between economic uncertainty and new business formation. By applying panel ARDL/PMG and dynamic fixed-effects models for three samples of countries over the period of 2006-2018, our results show that higher levels of economic uncertainty have an adverse relationship with the new business formation in the longrun. Our findings are robust with the inclusion of control variables, different estimation methods, and alternative measures of economic uncertainty.