Saul Estrin

Saul Estrin
The London School of Economics and Political Science | LSE · Department of Management

BA, MA,DPhil

About

384
Publications
91,130
Reads
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15,257
Citations
Introduction
Saul Estrin works at the Department of Management, The London School of Economics and Political Science. Saul does research in Foreign Direct Investment, Entrepreneurial Economics and Emerging Markets.
Additional affiliations
July 2005 - November 2020
The London School of Economics and Political Science
Position
  • Professor
Description
  • Founding head of department 2005-2011
December 1991 - June 2005
London Business School
Position
  • Professor (Full)
Description
  • faculty dean 1999-2004
Education
September 1975 - March 1979
University of Sussex
Field of study
  • Economics
September 1971 - July 1974
University of Cambridge
Field of study
  • Economics

Publications

Publications (384)
Article
Full-text available
Plain English Summary The key role of peer groups in informal investment. In this paper, we use a large multi-country database (Global Entrepreneurship Monitor) to explore what leads people to become an informal investor in new ventures. Informal investors, sometimes referred to in developed economies as business angels but also a widespread phenom...
Preprint
Theory and evidence from developed economies suggests that innovation activities benefit from agglomeration economies in cities. However, whether the same is true of developing countries has not been investigated by large-scale cross-country analysis, despite the fact that eighteen of the world’s top twenty cities by population are in developing co...
Article
Full-text available
As a digital financial innovation, equity crowdfunding (ECF) allows investors to exploit the complementarity of information provision and network effects in a reduced transaction cost environment. We build on the underlying distinction between soft and hard information and show that ECF platforms create an environment of greater information pooling...
Article
Full-text available
Does the introduction of corporate transparency and disclosure rules in emerging economies affect compliance, and therefore earnings quality and firm performance? We explore these questions for an important emerging economy, Russia, using a natural experiment, the 2002 introduction of Russian corporate governance code. We exploit the exogenous vari...
Preprint
Full-text available
Does the introduction of corporate transparency and disclosure rules affect compliance and therefore earnings quality and firm performance in emerging economies? We explore these questions for an important emerging economy, Russia, using a natural experiment, the 2002 introduction of Russian corporate governance code, to exploit the exogenous varia...
Article
Purpose This study aims to advance an international political economy (IPE) perspective that geo-political events can have long-lasting imprint effects on countries and their firms. The study also aims to explore the idea that shared political history and geography combine to create specific structural conditions that shape the international compet...
Chapter
We propose that it is an important ongoing research agenda to devise a new classification of economic systems based on empirical observation rather than abstract reasoning, and then subject this to the test of empirical validity by exploring whether this taxonomy explains observed behaviour.
Article
Full-text available
We characterize the knowledge production process whereby the inventive capabilities of the firm generate innovation output in highly inventive multinational enterprises (MNEs). We explore the sensitivity of this relationship to the strength of intellectual property rights (IPR) protection across the MNEs R&D subsidiaries. We argue that MNE innovati...
Article
It is challenging to provide an encompassing portrait of Mario Nuti's life and works: he was an exceptional man, who made significant intellectual contributions across a wide range of fields, as well as inspiring generations of students, colleagues and the profession in general, for more than fifty years. A brilliant debater and controversialist, h...
Article
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Video abstract: https://youtu.be/v9B9wCPP6z8 Research Summary: We consider what configurations of historical and geographic dimensions influence entrepreneurial growth aspirations (EGA). Our theoretical framework combines geography (coastal location, resource dependence), long-term colonial history (ethnic heterogeneity, legal origins), and post...
Article
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Distance is a central concept in the teaching of International Business (IB). However, most textbooks treat distance as static or slowly changing. We argue that distance is inherently a dynamic construct, as highlighted by the impact of COVID-19 on international business activities. Using the popular CAGE framework as a baseline, we illustrate the...
Chapter
Our aim in this chapter is to estimate the effects of European Monetary Union (EMU) membership on foreign direct investment (FDI). Previous literature on the cross-border impact of a common currency have concentrated on international trade effects. Our analysis is based on the gravity model, which has been successfully applied to explain most forms...
Article
Full-text available
We explore the public policy implications of two new, significant, and inter-related global phenomena. First, the rising share of services, particularly innovation-driven digital and knowledge-based services, in foreign trade and multinational enterprise activity; and second, the increasingly important role of global cities as home and hosts to the...
Article
Full-text available
This paper explores the impact of EU membership on foreign direct investment (FDI). It analyses empirically how the effects of such deep integration differ from other forms and investigates what drives these effects. Using a structural gravity framework on annual bilateral FDI data for almost every country in the world, over 1985-2018, we find EU m...
Cover Page
Full-text available
COMPARATIVE ECONOMICS OF TRANSITION IN SOUTH EAST EUROPE SPECIAL ISSUE OF ECONOMIC ANNALS No. 225 (2020 PART I) This issue of Economic Annals presents a selection of articles from a workshop on The Comparative Economics of Transition in South East Europe that took place at the University of Belgrade’s Faculty of Economics in September 2019. The wo...
Article
Full-text available
We posit that entrepreneurs who engage in strategic activities will have high growth aspirations. Our proposed mechanism is that strategic engagements, specifically product innovation, process innovation and internationalization, open entrepreneurial ventures to learning, and thereby greater growth opportunities. Furthermore, these learning effects...
Data
Data in Stata format to generate the results in Decker, Estrin, Mickiewicz (2020) (Use together with DO file)
Article
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This paper considers the factors influencing the comparative performance of state-owned and privately-owned enterprises (SOE/POE). The economics literature has argued that firm performance is influenced by governance arrangements, leading to expectations of inferior performance from SOEs. Meanwhile, a political economy literature classifies countri...
Chapter
In this essay, the authors tell the tale of David’s research journey, ebbing and weaving throughout his academic career. While the subject of David’s focus has drifted over time from Industrial Organization, to Multinational Firms, to Small and Medium-sized Enterprises, the interplay between public policy, entrepreneurship, and innovation has been...
Article
Full-text available
Mobile money is a financial innovation that provides transfers, payments, and other financial services at a low or zero cost to individuals in developing countries where banking and capital markets are deficient and financial inclusion is low. We use transaction costs and institutional theories to explain the growth and impact of mobile money. Havi...
Conference Paper
Full-text available
We posit that when entrepreneurs engage in strategic activities from the onset of their new operations, they will have high growth aspirations. Our proposed mechanism is that strategic engagements open entrepreneurial ventures to learning opportunities through new processes, systems and markets, and thereby to greater growth opportunities. We focus...
Conference Paper
Full-text available
Do corporate governance reforms influence firm decision-making in the intended way in emerging economies, where the institutional framework is weak and implementation may not be effective? We explore this issue for Russia, which implemented a corporate governance reform in 2002. Contrary perhaps to expectation, we document a significant increase in...
Article
Full-text available
In this paper, we pursue two related research questions. First, we enquire whether state owned enterprises (SOEs) perform better than privately owned firms in a large variety of emerging markets. To test this, we develop a unique dataset using firm-level data from the World Bank Enterprise Survey (WBES), resulting in a sample of over 50,000 firms f...
Article
Full-text available
Equity crowdfunding (ECF) offers entrepreneurs an online social media marketplace where they can access numerous potential investors who, in exchange for an ownership stake, may supply them with finance. In this paper, we describe the evolution of this market in the UK. Using an inductive qualitative longitudinal research design, we analyse the eme...
Article
Full-text available
We analyze conceptually and in an empirical counterpart the relationship between economic growth, factor inputs, institutions, and entrepreneurship. In particular, we investigate whether entrepreneurship and institutions, in combination in an ecosystem, can be viewed as a “missing link” in an aggregate production function analysis of cross-country...
Chapter
Full-text available
The level of entrepreneurial activity is higher in emerging markets than in developed economies, driven by high levels of necessity entry and less daunting entry barriers, especially in the informal sector. However, a gap remains in our understanding of its extent and of the drivers of its change. This chapter addresses this gap by conceptualizing...
Article
We analyze conceptually and in an empirical counterpart the relationship between economic growth, factor inputs, institutions, and entrepreneurship. In particular, we investigate whether entrepreneurship and institutions, in combination in an ecosystem, can be viewed as a Bmissing link^ in an aggregate production function analysis of cross-country...
Article
Multinational Enterprises (MNEs) from emerging economies (EEs) are establishing operations in advanced economies (AEs), apparently departing from traditional models of internationalization. We explore an under-explored difference between EE MNE and their AE counterparts concerning their country of origin: EEs have less munificent business environme...
Article
We analyse the relationship between institutional systems (configurations of countries with similar institutional characteristics) and firm performance. We use a large sample of firms from understudied countries to explore whether the performance impact of these configurations is the same (“equifinality”), whether this holds across different measur...
Article
Full-text available
Purpose This paper aims to conduct a systematic meta-analysis on emerging economies to summarize these effects and throw light on the strength and heterogeneity of these conditionalities. Design/methodology/approach This paper proposes a new methodological framework that allows country- and firm-level effects to be combined. The authors hand colle...
Article
This paper reviews the recent empirical evidence on privatization in developing countries, with particular emphasis on new areas of research such as the distributional impacts of privatization. Overall, the literature now reflects a more cautious and nuanced evaluation of privatization. Thus, private ownership alone is no longer argued to automatic...
Article
In this paper, we consider the potential paths of Business Group’s (BGs) evolution. We organize our analysis around the two dominant perspectives on BGs: institutional voids (IV) and entrenchment/exploitation (EE). We suggest that the empirical evidence does not entirely support either perspective, and neither fully predicts what we sometimes obser...
Chapter
This paper investigates whether and to what extent foreign direct investment inflows into the United Kingdom are caused by its membership in the European Union (EU). It reports two main sets of econometric estimates: (a) synthetic counterfactual method with annual data for large sample of developing and developed countries over 1970–2014 and (b) gr...
Conference Paper
Abstract We analyse how the patterns of strategic entrepreneurship in Africa are influenced by historically-embedded institutions. We argue that history becomes embedded in institutional environments and significantly influences a key element of strategic entrepreneurship, namely entrepreneurial ambitions. Our work is both qualitiative and quantita...
Article
Full-text available
We consider whether the impact of entrepreneurial orientation on business performance is moderated by the company affiliation with business groups. Within business groups, we Page 1 of 57 explore the trade-off between inter-firm insurance that enables risk-taking, and inefficient resource allocation. Risk-taking in group affiliated firms leads to...
Article
Purpose The purpose of this paper is to examine two prominent perspectives on business group functioning, institutional void (IV) and entrenchment/exploitation (EE), that make different predictions about the effect of business group (BG) on the economy. The authors examine the effects of BG prevalence in an economy and its effect on macroeconomic o...
Article
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We apply prospect theory to explain how personal and corporate bankruptcy laws affect risk perceptions of entrepreneurs at time of entry and therefore their growth ambitions. Previous theories have reached ambiguous conclusions as to whether countries with more debtor-friendly bankruptcy laws (i.e. laws that are more forgiving towards debtors in ba...
Article
Full-text available
There are conflicting predictions in the literature about the relationship between FDI and entrepreneurship. This paper explores how foreign direct investment (FDI) inflows, measured by lagged cross-border mergers and acquisitions (M&A), affect entrepreneurial entry in the host economy. We have constructed a micro-panel of more than two thousand in...
Article
Full-text available
Foreign direct investment (FDI) has been argued to improve company performance and stimulate growth and employment. Transition economies of Central and Eastern Europe (CEE) faced a desperate need to join the global economy, to improve their competitiveness and to create jobs through FDI. So, did the FDI come, and did it deliver what was expected? F...
Article
Abstract: We explore empirically the relationship between economic growth, factor inputs, institutions, and entrepreneurship. In particular, we investigate whether entrepreneurship and institutions, either independently or in combination in an ecosystem, represent the “missing link” in explaining cross country differences in productivity. To do thi...
Article
We analyze conceptually and in an empirical counterpart the relationship between economic growth, factor inputs, institutions, and entrepreneurship. In particular, we investigate whether entrepreneurship and institutions, in combination in an ecosystem, can be viewed as a “missing link” in an aggregate production function analysis of cross-country...
Data
Estrin, S., & Mickiewicz, T. (2011). Institutions and female entrepreneurship. Small business economics, 37(4), 397. see also do file
Article
Full-text available
We advance research on human capital and entrepreneurial entry and posit that, in order to generate value, social entrepreneurship requires different configurations of human capital than commercial entrepreneurship. We develop a multilevel framework to analyse the commonalities and differences between social and commercial entrepreneurship, includi...
Article
Full-text available
The paper explores the impact of foreign direct investment (FDI) on the economies of the Western Balkans during their transition to a market system. The paper recalls the political and historical circumstances that have delayed transition in the Western Balkans economies, and draws attention to the specific features of FDI that have influenced thei...
Chapter
Full-text available
The chapter examines whether there are specific features driving foreign direct investment (FDI) to the Western Balkan (WB) countries—Albania, Bosnia and Herzegovina, Croatia, Macedonia, Montenegro and Serbia—compared with other transition economies. Despite many positive developments during the 2000s, the Balkans may still face an image problem: f...