The Impact of Business Environment Reforms on New Firm Registration
The authors use panel data on the number of new firm registrations in 92 countries to study how the magnitude of reforms affects new firm registrations. They find that small reforms, in general less than 40 percent reduction in costs, days, or proc...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101207133231 http://hdl.handle.net/10986/3979 |
| Summary: | The authors use panel data on the number
of new firm registrations in 92 countries to study how the
magnitude of reforms affects new firm registrations. They
find that small reforms, in general less than 40 percent
reduction in costs, days, or procedures required for
business registration, do not have a significant effect on
new firm creation. This suggests that small reforms do not
have the intended effect on private sector development. They
also find important synergies in multiple reforms of two or
more business environment indicators. Finally, they show
that countries with relatively weaker business environments
require relatively larger reforms in order to impact new
firm growth. These results can be helpful to motivate
policymakers to make larger, broader reforms. |
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