Table 3.

Description of the variables included in the model

Variable typeIndicatorProxiesDescriptionData source
Dependent variablesTEATotal early-stage entrepreneurial activityPercentage of the 18–64 population who are either nascent entrepreneurs or owner-managers of a new businessGlobal Entrepreneurship Monitor (GEM)
Self-employmentSelf-employment ratePercentage of self-employed people in all employed peopleWorld Bank
Core independent variableRefugee inflowsRefugees in the total populationTotal refugee (under UNHCR’s mandate) population in total country population (Multiply 1,000 due to low amounts)World Bank Indicators, based on data from UNHCR
Other independent variables
Individual factorsAge% Population aged 20–39 years oldPopulation between the ages of 20 and 39 as a percentage of the total populationUN
% Population aged 40–69 years oldPopulation between the ages of 40 and 59 as a percentage of the total populationUN
GenderFemale populationThe female population is the percentage of the population that is femaleWorld Bank
Human capitalEducation (mean of schooling years)The average number of years of education received by people aged 25 years and older, converted from education attainment levels using official durations of each levelUN
Macroeconomic factorsGDP per capitaGDP per capita, PPP (constant 2017 international $)This indicator provides per capita values for the gross domestic product (GDP) expressed in current international dollars converted by purchasing power parity (PPP) conversion factorWorld Bank
Population growthPopulation growth (Annual %)The annual population growth rate for year t is the exponential rate of growth of the midyear population from year t-1 to t, expressed as a percentageWorld Bank
Unemployment rateUnemployment rateUnemployment refers to the share of the labor force that is without work but available for and seeking employment. Definitions of the labor force and unemployment differ by countryWorld Bank
InflationInflation, consumer prices (Annual %)Measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and servicesWorld Bank
Financial resourcesDomestic credit to private sector (% of GDP)The percentage of financial resources provided by private sectors as a percentage of GDPWorld Bank
FDIForeign direct investment, net inflows (% of GDP)Foreign direct investment net inflows show net new investment inflows less disinvestment in the reporting economy from foreign investors and are divided by GDPWorld Bank
Institutional factorsPolicies, regulationsRegulatory qualityReflects perceptions of the ability of the government to formulate and implement sound policies and regulations that permit and promote private sector development. Ranging from 0 (the lowest quality) to 100 (the highest quality) in rankingWorld Bank
TransparencyCorruption controlReflects perceptions of the extent to which public power is exercised for private gain, including both petty and grand forms of corruption, it ranges from 0 (the worst corruption control) to 100 (The best corruption control) in rankingWorld Bank
Administrative complexityTime to contract – time required to enforce a contract (days)The time required to enforce a contract is the number of calendar days from the filing of the lawsuit in court until the final determination and, in appropriate cases, paymentWorld Bank

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