Business Environment and Firm Entry : Evidence from International Data
Using a comprehensive database of firms in Western and Eastern Europe, the authors study how the business environment in a country drives the creation of new firms. They focus on regulations governing entry, although they also examine the effects o...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, D.C.
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/03/3961649/business-environment-firm-entry-evidence-international-data-business-environment-firm-entry-evidence-international-data http://hdl.handle.net/10986/14724 |
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okr-10986-147242021-04-23T14:03:20Z Business Environment and Firm Entry : Evidence from International Data Klapper, Leora Laeven, Luc Rajan, Raghuram BUSINESS ENVIRONMENT ENTERPRISES BUSINESS MANAGEMENT TRADE REGULATION LABOR FORCE FINANCIAL SECTOR INTELLECTUAL PROPERTY RIGHTS LABOR LAWS SKILLED WORKERS INDUSTRIAL RESEARCH CENTERS ANNUAL OBSERVATIONS BARRIERS TO ENTRY BUSINESS ENVIRONMENT COMPANY CORPORATION CORPORATIONS DEBT DEVELOPED COUNTRIES ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIES OF SCALE EMPLOYMENT ENTREPRENEURS EXPANSION FINANCIAL INSTITUTIONS FIRM SIZE FIRMS FISH FISHING FORESTRY GNP HUMAN CAPITAL INCOME INTELLECTUAL PROPERTY RIGHTS INTERMEDIARIES LABOR FORCE MINES PARTNERSHIP PATENTS PRIVATE SECTOR PUBLIC SECTOR QUALITY CONTROL RECYCLING SCREENING SIZE OF FIRMS SMALL BUSINESSES SMALL FIRMS TAXATION USE VALUE VENDORS VENTURE CAPITAL Using a comprehensive database of firms in Western and Eastern Europe, the authors study how the business environment in a country drives the creation of new firms. They focus on regulations governing entry, although they also examine the effects of a developed financial sector, a well-trained labor force, strong enforcement of intellectual property rights, and strict labor laws. The authors find entry regulations hamper entry, especially in industries that naturally should have high entry. They find that naturally "high entry" industries grow less, have lower profitability, and account for a lower share of the economy in countries with onerous regulations on entry. Also, value added per employee in naturally "high entry" industries grows more slowly in countries with onerous regulations on entry. This suggests entry regulations are neither benign nor welfare improving. The authors also find less entry into labor-intensive industries in countries with labor regulations that restrict the ability to fire workers. They do not imply that all regulations inhibit entry. In particular, regulations that enhance the enforcement of intellectual property rights or those that lead to a better developed financial sector do lead to greater entry in industries that do more research and development or industries that need more external finance. Finally, other aspects of the environment also matter: for instance, the general availability of skilled labor enhances entry in industries that require skilled labor. 2013-08-01T15:23:41Z 2013-08-01T15:23:41Z 2004-03 http://documents.worldbank.org/curated/en/2004/03/3961649/business-environment-firm-entry-evidence-international-data-business-environment-firm-entry-evidence-international-data http://hdl.handle.net/10986/14724 English en_US Policy Research Working Paper;No.3232 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
BUSINESS ENVIRONMENT ENTERPRISES BUSINESS MANAGEMENT TRADE REGULATION LABOR FORCE FINANCIAL SECTOR INTELLECTUAL PROPERTY RIGHTS LABOR LAWS SKILLED WORKERS INDUSTRIAL RESEARCH CENTERS ANNUAL OBSERVATIONS BARRIERS TO ENTRY BUSINESS ENVIRONMENT COMPANY CORPORATION CORPORATIONS DEBT DEVELOPED COUNTRIES ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIES OF SCALE EMPLOYMENT ENTREPRENEURS EXPANSION FINANCIAL INSTITUTIONS FIRM SIZE FIRMS FISH FISHING FORESTRY GNP HUMAN CAPITAL INCOME INTELLECTUAL PROPERTY RIGHTS INTERMEDIARIES LABOR FORCE MINES PARTNERSHIP PATENTS PRIVATE SECTOR PUBLIC SECTOR QUALITY CONTROL RECYCLING SCREENING SIZE OF FIRMS SMALL BUSINESSES SMALL FIRMS TAXATION USE VALUE VENDORS VENTURE CAPITAL |
| spellingShingle |
BUSINESS ENVIRONMENT ENTERPRISES BUSINESS MANAGEMENT TRADE REGULATION LABOR FORCE FINANCIAL SECTOR INTELLECTUAL PROPERTY RIGHTS LABOR LAWS SKILLED WORKERS INDUSTRIAL RESEARCH CENTERS ANNUAL OBSERVATIONS BARRIERS TO ENTRY BUSINESS ENVIRONMENT COMPANY CORPORATION CORPORATIONS DEBT DEVELOPED COUNTRIES ECONOMIC ANALYSIS ECONOMIC GROWTH ECONOMIES OF SCALE EMPLOYMENT ENTREPRENEURS EXPANSION FINANCIAL INSTITUTIONS FIRM SIZE FIRMS FISH FISHING FORESTRY GNP HUMAN CAPITAL INCOME INTELLECTUAL PROPERTY RIGHTS INTERMEDIARIES LABOR FORCE MINES PARTNERSHIP PATENTS PRIVATE SECTOR PUBLIC SECTOR QUALITY CONTROL RECYCLING SCREENING SIZE OF FIRMS SMALL BUSINESSES SMALL FIRMS TAXATION USE VALUE VENDORS VENTURE CAPITAL Klapper, Leora Laeven, Luc Rajan, Raghuram Business Environment and Firm Entry : Evidence from International Data |
| relation |
Policy Research Working Paper;No.3232 |
| description |
Using a comprehensive database of firms
in Western and Eastern Europe, the authors study how the
business environment in a country drives the creation of new
firms. They focus on regulations governing entry, although
they also examine the effects of a developed financial
sector, a well-trained labor force, strong enforcement of
intellectual property rights, and strict labor laws. The
authors find entry regulations hamper entry, especially in
industries that naturally should have high entry. They find
that naturally "high entry" industries grow less,
have lower profitability, and account for a lower share of
the economy in countries with onerous regulations on entry.
Also, value added per employee in naturally "high
entry" industries grows more slowly in countries with
onerous regulations on entry. This suggests entry
regulations are neither benign nor welfare improving. The
authors also find less entry into labor-intensive industries
in countries with labor regulations that restrict the
ability to fire workers. They do not imply that all
regulations inhibit entry. In particular, regulations that
enhance the enforcement of intellectual property rights or
those that lead to a better developed financial sector do
lead to greater entry in industries that do more research
and development or industries that need more external
finance. Finally, other aspects of the environment also
matter: for instance, the general availability of skilled
labor enhances entry in industries that require skilled labor. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Klapper, Leora Laeven, Luc Rajan, Raghuram |
| author_facet |
Klapper, Leora Laeven, Luc Rajan, Raghuram |
| author_sort |
Klapper, Leora |
| title |
Business Environment and Firm Entry : Evidence from International Data |
| title_short |
Business Environment and Firm Entry : Evidence from International Data |
| title_full |
Business Environment and Firm Entry : Evidence from International Data |
| title_fullStr |
Business Environment and Firm Entry : Evidence from International Data |
| title_full_unstemmed |
Business Environment and Firm Entry : Evidence from International Data |
| title_sort |
business environment and firm entry : evidence from international data |
| publisher |
World Bank, Washington, D.C. |
| publishDate |
2013 |
| url |
http://documents.worldbank.org/curated/en/2004/03/3961649/business-environment-firm-entry-evidence-international-data-business-environment-firm-entry-evidence-international-data http://hdl.handle.net/10986/14724 |
| _version_ |
1764430296925601792 |