Hong, Sounman; Lee, Sanghyun
A icle
Sha ing economy and go e nmen
Jou nal o Open Inno a ion: Technology, Ma ke , and Complexi y
P o ided in Coope a ion wi h:
Socie y o Open Inno a ion: Technology, Ma ke , and Complexi y (SOI mC)
Sugges ed Ci a ion: Hong, Sounman; Lee, Sanghyun (2020) : Sha ing economy and go e nmen ,
Jou nal o Open Inno a ion: Technology, Ma ke , and Complexi y, ISSN 2199-8531, MDPI, Basel, Vol.
6, Iss. 4, pp. 1-17,
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Jou nal o Open Inno a ion:
Technology, Ma ke , and Complexi y
A icle
Sha ing Economy and Go e nmen
Sounman Hong 1,* and Sanghyun Lee 2
1Depa men o Public Adminis a ion, Yonsei Uni e si y, Seoul 03722, Ko ea
2G adua e School o In o ma ion, Yonsei Uni e si y, Seoul 03722, Ko ea; [email p o ec ed]
*Co espondence: [email p o ec ed]
Recei ed: 5 Oc obe 2020; Accep ed: 27 No embe 2020; Published: 3 Decembe 2020


Abs ac :
We compa ed sha ing economy de elopmen in 90 coun ies o demons a e ha highe
quali ies o go e nmen a e associa ed wi h g ea e sha ing economy g ow h. To explain his inding,
we assumed ha sha ing economy bene i s a e enjoyed by he public, whe eas i s cos s a e chie ly
bo ne by ma ke incumben s. In conside ing hese compe ing in e es s, policymake s end o a o
he la e as single-indus y in e es s ha can be mo e easily o ganized o in luence policymaking.
We hen hypo hesized ha an elec o ally compe i i e, depoli icized, and e ec i e go e nmen
may il he balance agains he en enched ma ke incumben s, leading o he g ow h o sha ing
economy indus ies. O e all, we ound some suppo o his hypo hesis. We especially ound ha
elec o al compe i i eness s ongly impac ed sha ing economy de elopmen and ha his impac was
signi ican ly g ea e in a coun y wi h a depoli icized bu eauc acy and e ec i e go e nmen .
Keywo ds:
sha ing economy; quali y o go e nmen ; elec o al compe i i eness; poli iciza ion;
e ec i e go e nmen
1. In oduc ion
Digi al and in o ma ion echnologies ha e enabled he ise o he so-called “sha ing economy”,
in which, h ough pee - o-pee ac i i ies, people g an each o he empo a y access o hei unde u ilized
asse s o inancial compensa ion [
1
–
15
]. This new indus y’s apid g ow h and dis up i e na u e
has ini ia ed a ie ce deba e o e he p ope ole o go e nmen s [
8
,
16
–
18
]. P oponen s a gue ha
go e nmen s should emo e egula o y ba ie s o sha ing economy i ms, such as Ai bnb o Ube ,
o imp o e economic e iciency, whe eas c i ics call o s ic e egula ions o p o ec he igh s o
consume s, wo ke s, and incumben indus ies [19].
Go e nmen s a ound he globe ha e also adop ed subs an ially di e en solu ions in esponse o
he ise o sha ing economy. Fo example, he Uni ed S a es Con e ence o Mayo s issued a esolu ion
ecommending “suppo o making ci ies mo e sha eable.” Despi e such he o ic, ci y go e nmen s
ha e esponded in a a ie y o ways o his new economy, wi h many ci ies announcing hei in en ions
o ban popula sha ing se ices such as Ube o Ai bnb [
12
]. This he e ogenei y in go e nmen
esponses is obse ed in e na ionally as well. Unlike coun ies ha welcome a sha ing economy,
such as Finland, Sweden, and Singapo e, he Sou h Ko ean go e nmen comple ely banned Ube ,
while Japan adop ed s ic egula ions agains sho - e m home-sha ing se ices in 2018.
In his s udy, we asked why some go e nmen s a ound he wo ld welcome he ise o he sha ing
economy, while o he s s ongly oppose i . In o de o con ibu e o his que y, we hypo hesized
ha highe quali y go e nmen ins i u ions would be associa ed wi h mo e a o able go e nmen
policies o a sha ing economy. We p ima ily ocus on h ee aspec s o ins i u ional quali ies:
(1) elec o al compe i i eness, (2) depoli icized ci il se ice, and (3) o e all go e nmen e ec i eness.
F aming he ise o sha ing economy as a ba le be ween new en an s (e.g., Ai bnb o Ube ) and
incumben indus ies (e.g., axi o ho els), we i s explain why poli icians ha e incen i es o suppo
J. Open Inno . Technol. Ma k. Complex. 2020,6, 177; doi:10.3390/joi mc6040177 www.mdpi.com/jou nal/joi mc
J. Open Inno . Technol. Ma k. Complex. 2020,6, 177 2 o 17
he in e es s o ma ke incumben s i hei decisions a e no held accoun able. We hen a gue ha highe
quali y go e nmen s, as measu ed by elec o al compe i i eness, depoli icized bu eauc acy, and o e all
e ec i eness, may weaken he es ablished ma ke incumben s’ poli ical powe , leading o g ow h in
sha ing economy indus ies. We examine hese a gumen s by demons a ing posi i e associa ions
be ween he h ee ins i u ional measu es and he size o he sha ing economy in a gi en coun y.
Ou heo e ical a ionale is based on h ee di e en s ands o li e a u e. Fi s , we ega ded
sha ing se ices as ypical examples o dis up i e inno a ions, c ea ing compe i ion be ween sha ing
economy i ms and ma ke incumben s. Dis up i e inno a ions gene ally inco po a e new and
unp eceden ed ea u es, de ia ing so adically om exis ing al e na i es ha hey des oy exis ing
ules o compe i ion [
20
,
21
]. Second, ollowing S igle ’s [
22
], we assume ha he wo economic in e es s
(i.e., sha ing economy i ms and ma ke incumben s) compe e o poli ical a o . Ma ke incumben s
seek o aise egula o y ba ie s o en y, while new en an s y o lowe hem. Thi d, we use he
concep o “agile go e nance” o “adap i e go e nance” [
12
,
13
,
23
] o explain why go e nmen s decide
o aise o lowe egula o y ba ie s o en y. We a gue ha go e nmen s su e om “s a us quo bias,”
in which single-indus y economic in e es s “cap u e” policymake s. Howe e , i he poli ical sys em
possesses highe quali ies, go e nmen s become mo e lexible, agile, and adap i e o en i onmen
changes and echnological inno a ions, as hey a e held accoun able o hei decisions.
2. Sha ing Economy and he Roles o Go e nmen
P e ious li e a u e on sha ing economy and go e nmen may be g ouped in o se e al b oad
ca ego ies. The i s se o li e a u e examines he ques ion o “who” bene i s om he g ow h o
sha ing economy i ms [
8
,
16
,
24
–
28
]. O e all, his g oup o s udies ocuses on sha ing economy’s
“dis up i e” na u e [
29
]. These new business models epackage old echnology o c ea e new ma ke s,
dis up ing he incumben i ms. O he s udies ha e examined he cos –bene i dis ibu ion o sha ing
economy egula ions [
30
]. Fo ins ance, some s udies ha e explained ha he bene i s o sha ing
economy se ices a e widely dispe sed ac oss he public, whe eas hei cos s a e concen a ed on
a ela i ely small numbe o incumben i ms [
12
,
13
]. Iden i ying he “winne s” and “lose s” om
sha ing economy g ow h p o ides he heo e ical unde pinnings o egula ing his new inno a ion.
The second se o p e ious li e a u e explo es he ques ion o “how” go e nmen s should egula e
sha ing economy i ms [
7
,
31
–
33
]. In o he wo ds, his g oup o wo ks explo es egula o y issues ela ed
o he apid g ow h o sha ing economy indus ies. Fo ins ance, Edelman and Ge adin [
31
] iden i ied
po en ial ma ke ailu es associa ed wi h sha ing economy businesses and p oposed a egula o y
amewo k ha c ea es an e icien deli e y o se ices while p o ec ing se ice p o ide s, consume s,
and hi d pa ies. Simila ly, Mille [
33
] o e ed a numbe o p inciples o egula ing he sha ing
economy and p oposed u u e op ions o go e nmen s o imp o e exis ing app oaches o egula ing
he indus y.
Las ly, a ela i ely small se o li e a u e explains “why” some go e nmen s choose o hea ily
egula e sha ing economy se ices, while o he s do no [
12
,
13
,
34
]. Some s udies ha e applied he
poli ical economic pe spec i e such as he cap u e heo y o explain he a ied esponse o his new
indus y, while o he s applied he adap i e go e nance amewo k. This la e g oup assumes ha
go e nmen esponsi eness o he sha ing economy may be analyzed om a mo e gene al amewo k
o adap i e and agile go e nance [
23
]. This li e a u e explo es he poli ical, economic, and social ac o s
ha may make go e nmen s lexible, agile, and adap i e o en i onmen changes and echnological
inno a ions. This concep was applied o a ious go e nmen esponses o he ise o sha ing
economy [12,13].
This s udy con ibu es o his las s and o sha ing economy esea ch by making se e al heo e ical
and empi ical ad ancemen s. P e ious s udies ha e clea ly ad anced ou unde s anding o he sha ing
economy and go e nmen s’ oles. To ou knowledge, howe e , none o hem ha e a emp ed o explain,
om an in e na ional pe spec i e, why sha ing se ice indus ies ha e g own apidly in some coun ies
bu no in o he s. Fu he , p e ious esea ch has o e looked he possibili y ha , holding o he economic
J. Open Inno . Technol. Ma k. Complex. 2020,6, 177 3 o 17
ac o s cons an , he ins i u ional quali ies o go e nmen s may ha e subs an ial impac s on digi al
inno a ion g ow h. This is an impo an omission in he li e a u e, which limi s ou unde s anding o
sha ing economy g ow h and, mo e gene ally, c owd-based digi al inno a ion. This cu en esea ch
add esses his pauci y. In sum, his s udy con ibu es o he li e a u e by p esen ing, a a mul ina ional
le el, no el empi ical e idence o he associa ion be ween sha ing economy g ow h and a ious
ins i u ional quali ies o go e nmen s.
The emainde o he a icle p oceeds as ollows. In he nex sec ion, we explain ou hypo heses.
Then, we desc ibe ou me hodology and explain how we cons uc ed he da ase . In Sec ion 5,
we p esen he es o ou p oposed hypo heses. Based on he indings, we p esen he conclusion and
discuss ou indings in Sec ion 6.
3. Hypo heses
3.1. Poli ics o Sha ing Economy Regula ion
P e ious esea ch on he poli ics o egula ion a emp ed o explain who s ands o gain o lose
om go e nmen egula ions, and wha o ms o egula ion will be ins i u ed, along wi h hei wel a e
implica ions [
22
,
35
,
36
]. Wilson [
30
] p esen ed a amewo k o unde s and he poli ical signi icance o
hese economic s akes. In his amewo k, a egula ion (o , mo e gene ally, a policy) is classi ied in
e ms o he pe cei ed dis ibu ion o i s bene i s and cos s. Speci ically, bo h bene i s and cos s a e
ei he widely dis ibu ed ac oss he public a la ge o na owly concen a ed on a de inable segmen
o socie y (such as occupa ions, indus ies, o locali ies). This classi ica ion p oduces a wo-by- wo
ma ix, as shown in Figu e 1.
Figu e 1. Cos –bene i dis ibu ion and ou di e en ypes o policy si ua ions.
The i s quad an o he ma ix is whe e bo h bene i s and cos s a e widely dis ibu ed ac oss
he public a la ge, a si ua ion known as majo i a ian poli ics. The opposi e case is he so-called
in e es g oup poli ics, in which a policy’s bene i s and cos s a e all chie ly bo ne by a de inable
segmen o ci izens. In majo i a ian poli ics, he public has li le incen i e o o ganize a ound common
in e es s. On he o he hand, in in e es g oup poli ics, bo h g oups ha e s ong incen i es o o ganize
a ound common in e es s o in luence policy decisions. We will no ocus on hese wo si ua ions
in his s udy as hey do no i wi h he bene i –cos dis ibu ion o sha ing economy egula ions.
Speci ically, i would be inco ec o ega d he sha ing economy case as an in e es g oup poli ics
si ua ion, as hose indi iduals who s and o lose om en y ba ie s a e hose who would un sha ing
economy businesses i hese ba ie s did no exis . In o he wo ds, he in e es g oup poli ics case
J. Open Inno . Technol. Ma k. Complex. 2020,6, 177 4 o 17
canno adequa ely desc ibe he bene i –cos dis ibu ion o an en y egula ion o a new indus y, as he
g oup chie ly bea ing he cos s has no ye en e ed in o he ma ke and is hus no p ope ly de ined.
In analyzing he bene i –cos dis ibu ion o en y egula ions o dis up i e inno a ions, he o he
wo si ua ions a e mo e use ul. Clien poli ics e e s o a si ua ion in which he cos s o a policy
o egula ion a e widely dis ibu ed ac oss he public, while he bene i s a e enjoyed by a de ined
segmen o socie y. En ep eneu ial poli ics p esen s an opposing si ua ion; he bene i s a e dispe sed,
while he cos s a e concen a ed. As Hong and Lee [
12
,
13
] demons a ed, he egula ion o a sha ing
economy indus y can be bes desc ibed by ei he clien poli ics o en ep eneu ial poli ics. In ac ,
hese wo cases a e like he wo sides o a coin. Ins i u ing en y egula ion is a clien poli ics
si ua ion, whe eas emo ing i is an en ep eneu ial poli ics si ua ion. F om an e iciency poin o
iew, any egula ions ha slow down he g ow h o dis up i e inno a ions will bene i he ma ke
incumben s, bu educe compe i ion in he ma ke , esul ing in less compe i i e ma ke s and highe
p ices o consume s. The ma ke incumben s a e he winne s, whe eas he consume s (and he ea ly
inno a o s such as Ai bnb o Ube ) a e he lose s. Mos impo an ly, in he long un, such policies may
e en s i le he a e o ma ke inno a ion and en ep eneu ship.
In ac , p e ious schola s ha e paid special a en ion o en y egula ions o dis up i e inno a ions.
S igle [
22
] a gued ha egula ion is acqui ed by he indus y (in o de o p omo e i s own bene i s),
and he mos ypical o m o “acqui ed egula ion” is en y con ol. Fo ins ance, as S igle [
22
] (p. 5)
s a ed, “e e y indus y o occupa ion ha has enough poli ical powe o u ilize he s a e will seek
o con ol en y.” As dis up i e inno a ions eme ge, he bene i –cos dis ibu ion o en y con ol
ollows he clien poli ics si ua ion. The bene i s a e enjoyed by he en enched indus ies (e.g., axi o
ho els), while he cos s a e widely dispe sed ac oss po en ial consume s. In such cases, poli ical science
esea ch has p edic ed ha policymake s will se e he “clien ,” wi h indus ial economic in e es s
ca ying mo e weigh in policy decisions han he public in e es [
37
,
38
]. This is because “ he [poli ical]
sys em is calcula ed o implemen [
. . .
] many s ongly el p e e ences o mino i ies bu o dis ega d
he lesse p e e ences o majo i ies” [22] (p. 12).
3.2. Tes able Hypo heses
We hus a explained ha , when dis up i e inno a ions eme ge, policymake s gene ally su e
om “s a us quo bias” (i.e., hey design egula o y policies ha slow he g ow h o new en an s).
This phenomenon is desc ibed as “cap u e” in economics [
39
–
41
] and as “policy monopoly” in poli ical
science [
38
]. In his s udy, we p opose ha adap i e go e nance achie ed by highe ins i u ional
quali ies o go e nmen s may mi iga e his bias. In he con ex o ou case, we de ined adap i e
go e nance as a o m o go e nance ha ad ances public in e es s by o e coming “s a us quo bias”
and accommoda ing dis up i e inno a ions in he economy. P e ious esea ch has shown ha
decen aliza ion makes go e nmen s mo e lexible, agile, and adap i e o en i onmen changes [
23
,
42
]
(bu see [
13
]). As Janssen and Van de Voo [
23
] (p. 3) s a ed, he “co e cha ac e is ics o adap i e
go e nance [include] decen alized decision-making.” In gene al, decen aliza ion would make
go e nmen s adap i e as i b ings he go e nmen “close o he people” in Mon esquieu’s sense.
Howe e , i is no clea whe he his logic can apply o he case o sha ing economy, because he
bene i s o he dis up i e inno a ion a e widely dispe sed beyond local bounda ies (e.g., see [13]).
Ins ead, we p opose h ee ins i u ional quali ies o go e nmen s ha may lead o adap i e
go e nance: (1) elec o al compe i i eness, (2) depoli icized ci il se ice, and (3) o e all go e nmen
e ec i eness. F om he s andpoin o he public a la ge (who bea s he cos s o he egula ions),
elec ions a e a guably he mos e ec i e ins i u ional a angemen s a ailable o in luencing public
o icials, as policymake s’ ea s o losing o ice in coming elec ions lead hem o espond o ci izen
demands
[43,44]
. This ins i u ional impac may be g ea e when poli icians ace compe i i e
elec ions
[12,45]
. The e o e, i ollows ha mo e elec o al compe i ion will inc ease policymake s’
esponsi eness o ci izen demands. This weakens he ma ke incumben s’ poli ical powe , which can
lead o sha ing economy g ow h. We hus p esen he ollowing hypo hesis:

J. Open Inno . Technol. Ma k. Complex. 2020,6, 177 5 o 17
Hypo hesis 1:
A g ea e le el o elec o al compe i i eness may be associa ed wi h g ea e sha ing
economy de elopmen .
Policymake s use egula ions o a o o ganized in e es s, and he eby ob ain campaign
con ibu ions and o es. This poli ical incen i e de ies he a ional p ocess o cos –bene i analysis,
and hus i would ha e a g ea e impac on policymaking when he ci il se ice sys em is highly
poli icized. The no ion ha he neu al compe ence o bu eauc acy would enhance public se ice
pe o mance can be aced back o ea lie wo ks, including Max Webe [
46
] and Wood ow Wilson [
47
].
Al hough a comple e di ision be ween poli ics and adminis a ion is un ealis ic, mos schola s
end o ag ee ha he poli iciza ion o ci il se ice has nega i e impac s on public adminis a ion
pe o mance [
48
–
51
]. I he e o e ollows ha a depoli icized ci il se ice sys em ha insula es i sel
om he poli ical in luence o o ganized in e es s will be less swayed by ma ke incumben oices,
leading o sha ing economy g ow h. We hus p esen he ollowing hypo hesis:
Hypo hesis 2:
Depoli icized ci il se ice (i.e., a lowe le el o poli iciza ion in ci il se ice) may be associa ed
wi h g ea e sha ing economy de elopmen .
Las ly, we also conside o e all go e nmen e ec i eness as a quali y by which o measu e
go e nmen s. In his s udy, we ollow Kau mann e al. [
52
] o de ine o e all go e nmen e ec i eness
as including he quali y o he bu eauc acy, he quali y o public se ice p o ision, he compe ence
o ci il se an s, he insula ion o ci il se ice om poli ical in luence, and he c edibili y o he
go e nmen ’s commi men . E ec i e go e nmen s may also be mo e lexible, agile, and adap i e o
en i onmen al changes and echnological inno a ions. I he e o e ollows ha an e ec i e go e nmen
will be conduci e o adap i e go e nance ha conside s public in e es mo e hea ily han he in e es s
o ma ke incumben s. We hus p esen he ollowing hypo hesis:
Hypo hesis 3:
A g ea e le el o go e nmen e ec i eness may be associa ed wi h g ea e sha ing
economy de elopmen .
As we will epo in he esul s sec ion, we ound a obus ly posi i e associa ion be ween elec o al
compe i i eness and he dependen a iable, bu ailed o ind compa ably s ong impac s om
depoli icized ci il se ice and o e all go e nmen e ec i eness. Howe e , we a gue ha he impac s o
hese h ee ins i u ional quali ies complemen one ano he . A g ea e le el o elec o al compe i i eness
makes policymake s mo e esponsi e o ci izen demands as hey ea losing o ice in he coming
elec ion. Howe e , such impac would be smalle in a highly poli icized ci il se ice sys em, in which
he o ganized in e es s o ma ke incumben s ha e s ong poli ical in luences. Simila ly, he impac o
g ea e elec o al compe i i eness would be smalle i he go e nmen is highly ine ec i e o e all. In
o he wo ds, e en i he main e ec s o depoli icized ci il se ice and o e all go e nmen e ec i eness
we e limi ed, hese wo ins i u ional quali ies could s ill play signi ican mode a ing oles as hey
g ea ly enhance he impac o elec o al compe i i eness on sha ing economy de elopmen . We hus
p esen he ollowing hypo heses:
Hypo hesis 4:
The associa ion be ween elec o al compe i i eness and sha ing economy de elopmen may be
g ea e in a coun y wi h a depoli icized ci il se ice sys em.
Hypo hesis 5:
The associa ion be ween elec o al compe i i eness and sha ing economy de elopmen may be
g ea e in a coun y wi h an e ec i e go e nmen sys em.
J. Open Inno . Technol. Ma k. Complex. 2020,6, 177 6 o 17
4. Me hods and Da a
4.1. Me hod
To e alua e he p oposed hypo heses, we es ima ed he e ec s o h ee ins i u ional quali ies
o go e nmen s on he de elopmen o sha ing economy se ices. Among he many ins i u ional
cha ac e is ics, we chose (1) elec o al compe i i eness, (2) depoli icized ci il se ice, and (3) o e all
go e nmen e ec i eness as he ea men a iables. The dependen a iable was he na ion-le el
de elopmen o sha ing economy se ices, as measu ed by he global sha ing economy index published
by Timb o, a hink ank based in Sweden. Speci ically, he models used in his s udy a e as ollows:
Yi=µ+%ElecCompi+σDepoli i+τGo E ec i+Xiγ+ηi(1)
whe e
Yi
is his s udy’s dependen a iable, he sha ing economy de elopmen in coun y i. This a iable
is cons uc ed by compiling a ic olume and sc aped da a o es ima e he o e all de elopmen o
he pee - o-pee economy [
53
]. The h ee ea men a iables a e (1)
ElecCompi
, he le el o elec o al
compe i i eness; (2)
Depoli i
, he le el o depoli icized bu eauc acy; and (3)
Go E ec i
, he le el
o o e all go e nmen e ec i eness o go e nmen in coun y i. The coe icien s o in e es a e
σ
,
and
τ
, wi h
ηi
as he e o e m. We used o dina y leas squa es (OLS) o es ima e he impac s o he
ea men a iables.
We also included se e al con ol a iables, X
i
. Fi s , we accoun ed o he po en ial di e ences
in poli ical sys ems by con olling o an indica o o a p esiden ial sys em. Second, we con olled
o he o e all economy size, as measu ed by GDP pe capi a. We also included he coun y’s deg ee
o economic eedom, as measu ed by he economic eedom index om he F ase Ins i u e [
54
];
he egula o y en i onmen conduci e o business ope a ion, as measu ed by he ease o doing business
sco e om he Wo ld Bank; and he le el o globaliza ion, as measu ed by he globaliza ion index [
55
].
Finally, he sha e o popula ion using he In e ne was also con olled o , as p e ious s udies ha e
ci ed in as uc u e o in o ma ion and communica ion echnology as he mos impo an de e minan
o sha ing economy de elopmen [56].
4.2. Da a
The p ima y challenge o he empi ical in es iga ion was he limi ed obse a ions on he
de elopmen o sha ing economy se ices a coun y le els. We hus ook ad an age o he global
sha ing economy index ecen ly published by Timb o, which measu es he le el o sha ing economy
usage in a coun y [
53
]. This a iable combines online a ic and he numbe o ac i e supplie s
associa ed wi h he online pee - o-pee indus y, p oducing a no malized pe capi a usage o a sha ing
economy. To ou knowledge, his a iable is he only measu e ha can compa e sha ing economy
de elopmen ac oss coun ies. We hus used his as ou dependen a iable.
The a iables o he igh we e all d awn om se e al public sou ces. Elec o al compe i i eness
measu es, ma gin o mino i y, and he indica o o a p esiden ial poli ical sys em we e all collec ed
om he Da abase o Poli ical Ins i u ions 2017 (DPI 2017) compiled by he De elopmen Resea ch
G oup o he Wo ld Bank [
57
]. The le el o depoli icized bu eauc acy was collec ed om he QoG
Expe Su ey Da a [
58
]. This a iable was cons uc ed by a e aging he answe s o su ey i ems A, B,
D, E, F, G, I, and J o Ques ion 2, which we conside ed mos ele an o a lowe le el o poli iciza ion.
The le el o go e nmen e ec i eness was d awn om he Wo ldwide Go e nance Indica o s compiled
by he Wo ld Bank G oup [
52
]. The size o he economy, as measu ed by GDP pe capi a, was aken
om he Maddison P ojec Da abase [
59
]. The economic eedom index, ease o doing business sco e,
and index o globaliza ion we e d awn, espec i ely, om he Economic F eedom o he Wo ld Da abase
published by he F ase Ins i u e [
54
], ease o doing business epo published by he Wo ld Bank
G oup [
60
], and he KOF index o globaliza ion [
61
]. Finally, he sha e o indi iduals wi h In e ne
access as a pe cen age o he popula ion was aken om he Wo ld De elopmen Indica o s compiled
J. Open Inno . Technol. Ma k. Complex. 2020,6, 177 7 o 17
by he Wo ld Bank G oup [
62
]. In Table 1, we p esen he summa y s a is ics o all he a iables
included in his s udy.
Table 1. Summa y s a is ics.
Va iable Obs. Mean S d. De . Min Max
The de elopmen o sha ing economy 90 8.879 16.019 0 100
Legisla i e elec o al compe i i eness 90 6.667 1.049 1 7
Execu i e elec o al compe i i eness 90 6.522 1.265 1 7
Ma gin o mino i y 90 0.398 0.141 0 0.679
Depoli icized bu eauc acy 90 4.539 0.443 3.017 5.427
Go e nmen e ec i eness 90 0.287 0.925 −
1.298
2.237
P esiden ial sys em 90 0.456 0.501 0 1
GDP pe capi a (in log) 90 9.380 1.073 6.867 11.242
Economic eedom 90 63.724 9.357 37.6 89.4
Ease o doing business 90 65.113 11.575 43.22 91.71
Globaliza ion 90 67.576 12.802 45.012 90.474
In e ne access 90 53.672 26.278 4.174 98.2
We no e h ee issues ega ding ou da a. Fi s , he dependen a iable o his s udy— he measu ed
le el o sha ing economy usage in a coun y—was p o ided by a hink ank ha suppo s ee ma ke s.
Some may be wo ied ha he ideological posi ion o his hink ank may ha e in oduced bias in he da a.
We s ongly belie e, howe e , ha his po en ial measu emen e o was no c i ical. Fi s , his hink
ank measu ed he le el o sha ing economy quan i a i ely, a he han quali a i ely, by combining
online a ic and he numbe o online pee - o-pee indus y supplie s. Fu he mo e, he main goal
o ou analyses was o es ima e no he le el o sha ing economy usage bu he associa ion be ween
sha ing economy usage and ins i u ional quali ies o he go e nmen . Fo he measu emen e o o
bias ou coe icien s o in e es s, one should sys ema ically o e - o unde es ima e he le el o sha ing
economy usage o coun ies wi h ce ain go e nmen quali ies. Such a conce n is no e y likely o be
ealized, as he e is no eason o belie e ha any esea che would in oduce such sys ema ic bias in
he da a, gi en he way his a iable is cons uc ed (i.e., quan i a i ely combining online a ic and he
numbe o supplie s).
Second, we no e ha ou sample size was 90; al hough he global sha ing economy index was
p oduced o 213 coun ies, we limi ed ou analyses o he coun ies ha ha e eliable da a on he
ins i u ional quali ies o go e nmen . As explained, he igh -hand side a iables, including he
ins i u ional quali ies, we e collec ed om a ious sou ces; he ull se o a iables we e a ailable only
o he 90 coun ies, which cons i u ed ou inal sample. We hus had no disc e ion o e he inclusion
o a pa icula coun y in o he sample. Table 2lis s he 90 coun ies included o ou analyses.
Thi d, he dependen a iable, he global sha ing economy, was cons uc ed in 2018 on he basis
o mon hly-only a ic da a and he numbe o ac i e supplie s using au oma ed “web sc aping”
echniques. Con e sely, we used he mos ecen ly a ailable da a o he igh -hand side a iables.
As hese a iables a e gene ally no measu ed annually, he yea each ins i u ional cha ac e is ic
was cons uc ed di e s ac oss da a sou ces. Such an issue is common in compa a i e analyses o
go e nmen ins i u ions. Fu he mo e, because o igh -hand side a iables no being measu ed
annually, one may ega d hem as lagging by a yea o wo.
J. Open Inno . Technol. Ma k. Complex. 2020,6, 177 8 o 17
Table 2. Lis o coun ies included in he analyses.
Coun y Index Coun y Index Coun y Index
Iceland 100 Singapo e 5.6 Senegal 0.7
Mal a 58.2 Sou h A ica 4.7 Kazakhs an 0.7
New Zealand 52.8 Fiji 4 Egyp 0.6
C oa ia 52.2 B azil 4 Ky gyzs an 0.6
Denma k 45.9 A menia 3.7 El Sal ado 0.6
I eland 41 Ge many 3.4 Uk aine 0.6
Ba bados 29.4 S i Lanka 3.4 Indonesia 0.6
No way 29 Albania 3.3 Nepal 0.5
Aus alia 26.2 Dominican Republic 3 Guyana 0.5
Po ugal 25.6 Mexico 3 Slo enia 0.5
Spain 22.7 A gen ina 2.9 Pe u 0.4
G eece 22.5 Mo occo 2.5 Colombia 0.3
I aly 21.2 Thailand 2.4 China 0.3
Geo gia 20.3 Romania 2.4 Zimbabwe 0.3
Canada 16.6 Japan 1.9 Ghana 0.3
Swi ze land 16 Nica agua 1.8 Rwanda 0.2
Ne he lands 14.6 Poland 1.8 Alge ia 0.2
Es onia 14 Tu key 1.8 Uganda 0.2
Sweden 13.4 Ecuado 1.8
Mozambique
0.1
Is ael 13.1 Lebanon 1.4 Togo 0.1
Finland 12.5 Philippines 1.3
Madagasca
0.1
U uguay 11.7 Li huania 1.2 India 0.1
Mau i ius 11.3 Kenya 1.2 Came oon 0.1
Chile 9.8 Gua emala 1.1 Benin 0.1
Belgium 9.4 Bo swana 1 Tajikis an 0.1
Jamaica 6.9 Aus ia 0.9 Slo akia 0.1
La ia 6.9 Cambodia 0.9 Malawi 0.1
Hunga y 6.5 Vie nam 0.8 Nige ia 0
Bulga ia 6.1 Aze baijan 0.7 Guinea 0
Bosnia 5.7 Cos a Rica 0.7 Bangladesh 0
5. Resul s
5.1. Main Impac s o Go e nmen Quali ies
Be o e we p esen he esul s o ou eg ession analysis, we i s p esen desc ip i e igu es ha
isually depic he associa ions be ween he dependen and ea men a iables. In Figu e 2, we show he
associa ion be ween sha ing economy de elopmen in a coun y and elec o al compe i i eness. The key
a iable o ou in e es , elec o al compe i i eness, measu es how much compe i ion poli ical ac o s who
occupy he legisla i e and execu i e b anches ace in elec ions. This a iable is measu ed sepa a ely
o each b anch. In Figu e 2a, we show he associa ion be ween sha ing economy de elopmen and
legisla i e elec o al compe i i eness, whe eas in Figu e 2b we ha e execu i e elec o al compe i i eness.
As obse ed, we ound a posi i e associa ion be ween he wo ea men s and dependen a iable.
O e all, a g ea e le el o elec o al compe i i eness in ei he he legisla i e o he execu i e b anch was
associa ed wi h g ea e sha ing economy de elopmen .
In Figu e 2c,d we discuss he second and hi d hypo heses. In Figu e 2c, we show he associa ion
be ween sha ing economy de elopmen in a coun y and depoli icized ci il se ice (i.e., a lowe le el
o poli iciza ion). He e, he igu e ails o show a clea posi i e o a clea nega i e associa ion be ween
he wo a iables; hus, he second hypo hesis is no s ongly suppo ed in he igu e. On he o he
hand, in Figu e 2d we explo e he hi d hypo hesis by examining he associa ion be ween sha ing
economy de elopmen and go e nmen e ec i eness. O e all, he igu e shows a clea associa ion
be ween he wo a iables, suppo ing he hi d hypo hesis: a g ea e le el o go e nmen e ec i eness
is associa ed wi h g ea e sha ing economy de elopmen .
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