Business Regulations and Growth
Over the past decade, there has been increased interest in improving business regulations, in part because of the increased availability of data that can inform and monitor those improvements. This paper analyzes whether these regulatory changes ar...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2015
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2015/06/24604146/business-regulations-growth http://hdl.handle.net/10986/22172 |
| Summary: | Over the past decade, there has been
increased interest in improving business regulations, in
part because of the increased availability of data that can
inform and monitor those improvements. This paper analyzes
whether these regulatory changes are linked to economic
outcomes. With panel data for 10 years across more than 180
countries, the paper establishes the link between business
regulations, firm creation, and growth. It is found that an
improvement of 10 points in the overall measure of business
regulations is linked to an increase of around 0.5 new
businesses per 1,000 adults. Moreover, the results show that
although small changes in the overall level of business
regulations may have a negligible link to growth, moving
from the lowest quartile of improvement in business
regulations to the highest quartile is associated with a
significant increase in annual per capita growth of around
0.8 percentage points. In addition, the results highlight
the importance of sound entry and exit regulations and sound
credit market regulations and court enforcement for growth. |
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