Who Survives? The Impact of Corruption, Competition and Property Rights across Firms
Size, age, sector, and productivity are commonly cited as factors determining a firm s survival. However, there are several dimensions of the investment climate in which the firm operates that affect whether it continues in business or exits. This...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| 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_20091020154830 http://hdl.handle.net/10986/4276 |
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okr-10986-4276 |
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| recordtype |
oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
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Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO LOANS ARREARS AVERAGE PRODUCTIVITY BANK POLICY BANKRUPTCY BARRIER BORROWING BRIBE BRIBES BUDGET CONSTRAINT BUSINESS CLIMATE BUSINESS CYCLE BUSINESS ENVIRONMENT BUSINESS REGULATIONS CASH FLOWS CHECKS COMPETITORS CORRUPTION COST OF CAPITAL COST OF FINANCE COUNTRY DUMMIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNT RATE DOMESTIC CREDIT DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH ENABLING ENVIRONMENTS ENTERPRISE PERFORMANCE ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP EXPORTER EXPORTERS EXPOSURE FINANCE COST FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIXED COST FIXED COSTS FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN FIRMS FOREIGN OWNERS FOREIGN PARTNER FOREIGN PARTNERS FORMAL FINANCE GOVERNMENT SUBSIDIES INCOME INDIVIDUAL FIRM INFLATION INSECURE PROPERTY INSTITUTIONAL DEVELOPMENT INSTRUMENT INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT CLIMATES INVESTMENT DECISIONS JOB CREATION JOINT VENTURE JOINT VENTURE PARTNER JOINT VENTURES JUDICIAL SYSTEM LABOR MARKET LACK OF COMPETITION LACK OF PROPERTY LACK OF TRANSPARENCY LAND TITLES LEGAL CONSTRAINTS LEGAL DEVELOPMENT LEGAL INFRASTRUCTURE LEGAL RIGHTS LEGAL SYSTEM LIMITED ACCESS LIMITED ACCESS TO FINANCE LOAN LOCAL FINANCIAL MARKETS MACROECONOMIC CONDITIONS MANUFACTURING INDUSTRIES MARKET CONDITIONS MARKET DISCIPLINE MARKET MECHANISMS MARKET REGULATIONS MARKET STRUCTURE MICROENTERPRISES MONETARY FUND MULTINATIONAL MULTINATIONAL CORPORATIONS MULTINATIONALS NEW PRODUCTS OUTPUT OVERHEAD COSTS PASTURES POLICY MAKERS POLITICAL ECONOMY POWER OUTAGES PREFERENTIAL ACCESS PRIVATE PARTIES PRODUCERS PRODUCTIVITY GROWTH PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION REAL ESTATE RED TAPE REGULATORY BURDENS REGULATORY REQUIREMENTS RETURN RULE OF LAW SMALL ENTERPRISES SMALL FIRMS SME SOCIAL CAPITAL STATE OWNED ENTERPRISES SUPPLIERS TAXATION THEORETICAL MODELS TRACK RECORD TRADE LIBERALIZATION TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY TURNOVER UNION WORLD DEVELOPMENT INDICATORS |
| spellingShingle |
ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO LOANS ARREARS AVERAGE PRODUCTIVITY BANK POLICY BANKRUPTCY BARRIER BORROWING BRIBE BRIBES BUDGET CONSTRAINT BUSINESS CLIMATE BUSINESS CYCLE BUSINESS ENVIRONMENT BUSINESS REGULATIONS CASH FLOWS CHECKS COMPETITORS CORRUPTION COST OF CAPITAL COST OF FINANCE COUNTRY DUMMIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNT RATE DOMESTIC CREDIT DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH ENABLING ENVIRONMENTS ENTERPRISE PERFORMANCE ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP EXPORTER EXPORTERS EXPOSURE FINANCE COST FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIXED COST FIXED COSTS FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN FIRMS FOREIGN OWNERS FOREIGN PARTNER FOREIGN PARTNERS FORMAL FINANCE GOVERNMENT SUBSIDIES INCOME INDIVIDUAL FIRM INFLATION INSECURE PROPERTY INSTITUTIONAL DEVELOPMENT INSTRUMENT INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT CLIMATES INVESTMENT DECISIONS JOB CREATION JOINT VENTURE JOINT VENTURE PARTNER JOINT VENTURES JUDICIAL SYSTEM LABOR MARKET LACK OF COMPETITION LACK OF PROPERTY LACK OF TRANSPARENCY LAND TITLES LEGAL CONSTRAINTS LEGAL DEVELOPMENT LEGAL INFRASTRUCTURE LEGAL RIGHTS LEGAL SYSTEM LIMITED ACCESS LIMITED ACCESS TO FINANCE LOAN LOCAL FINANCIAL MARKETS MACROECONOMIC CONDITIONS MANUFACTURING INDUSTRIES MARKET CONDITIONS MARKET DISCIPLINE MARKET MECHANISMS MARKET REGULATIONS MARKET STRUCTURE MICROENTERPRISES MONETARY FUND MULTINATIONAL MULTINATIONAL CORPORATIONS MULTINATIONALS NEW PRODUCTS OUTPUT OVERHEAD COSTS PASTURES POLICY MAKERS POLITICAL ECONOMY POWER OUTAGES PREFERENTIAL ACCESS PRIVATE PARTIES PRODUCERS PRODUCTIVITY GROWTH PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION REAL ESTATE RED TAPE REGULATORY BURDENS REGULATORY REQUIREMENTS RETURN RULE OF LAW SMALL ENTERPRISES SMALL FIRMS SME SOCIAL CAPITAL STATE OWNED ENTERPRISES SUPPLIERS TAXATION THEORETICAL MODELS TRACK RECORD TRADE LIBERALIZATION TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY TURNOVER UNION WORLD DEVELOPMENT INDICATORS Hallward-Driemeier, Mary Who Survives? The Impact of Corruption, Competition and Property Rights across Firms |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5084 |
| description |
Size, age, sector, and productivity are
commonly cited as factors determining a firm s survival.
However, there are several dimensions of the investment
climate in which the firm operates that affect whether it
continues in business or exits. This paper uses new panel
data from 27 Eastern European and Central Asian countries to
test the importance of five areas of the business climate on
firm exit: the efficiency of government services, access to
finance, the extent of corruption or cronyism, the strength
of property rights, and the degree of competition. The paper
finds that weaknesses in these areas do affect the
probability of firm exit largely in ways that undermine
the Schumpeterian cleansing role of exit in raising overall
productivity. Greater costs and regulatory burdens raise the
probability that more productive firms exit, while less
developed financial and legal institutions mitigate forces
that would otherwise push less productive firms to exit.
Thus, the more productive firms stand to gain the most from
improvements in the investment climate, whether that is
lowering transaction costs or improving market mechanisms.
This holds both within countries and across countries. The
impact of a particular investment climate measure can also
differ significantly by type of firm, with the focus given
to firm size. The differential impact on size can be
significant at a size cutoff of 10 or more employees. As
these are the firms that are near the threshold of many
regulatory requirements, the implications are not just with
regard to whether a firm remains in operation, but whether
it does so in the formal sector. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Hallward-Driemeier, Mary |
| author_facet |
Hallward-Driemeier, Mary |
| author_sort |
Hallward-Driemeier, Mary |
| title |
Who Survives? The Impact of Corruption, Competition and Property Rights across Firms |
| title_short |
Who Survives? The Impact of Corruption, Competition and Property Rights across Firms |
| title_full |
Who Survives? The Impact of Corruption, Competition and Property Rights across Firms |
| title_fullStr |
Who Survives? The Impact of Corruption, Competition and Property Rights across Firms |
| title_full_unstemmed |
Who Survives? The Impact of Corruption, Competition and Property Rights across Firms |
| title_sort |
who survives? the impact of corruption, competition and property rights across firms |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091020154830 http://hdl.handle.net/10986/4276 |
| _version_ |
1764390707422822400 |
| spelling |
okr-10986-42762021-04-23T14:02:16Z Who Survives? The Impact of Corruption, Competition and Property Rights across Firms Hallward-Driemeier, Mary ACCESS TO CAPITAL ACCESS TO CREDIT ACCESS TO EXTERNAL FINANCE ACCESS TO FINANCE ACCESS TO LOANS ARREARS AVERAGE PRODUCTIVITY BANK POLICY BANKRUPTCY BARRIER BORROWING BRIBE BRIBES BUDGET CONSTRAINT BUSINESS CLIMATE BUSINESS CYCLE BUSINESS ENVIRONMENT BUSINESS REGULATIONS CASH FLOWS CHECKS COMPETITORS CORRUPTION COST OF CAPITAL COST OF FINANCE COUNTRY DUMMIES DEVELOPED COUNTRIES DEVELOPING COUNTRIES DEVELOPING COUNTRY DISCOUNT RATE DOMESTIC CREDIT DUMMY VARIABLES ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE EMPLOYEE EMPLOYMENT EMPLOYMENT GROWTH ENABLING ENVIRONMENTS ENTERPRISE PERFORMANCE ENTREPRENEUR ENTREPRENEURS ENTREPRENEURSHIP EXPORTER EXPORTERS EXPOSURE FINANCE COST FINANCIAL ACCESS FINANCIAL CONSTRAINTS FINANCIAL DEVELOPMENT FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SERVICES FINANCIAL SYSTEM FINANCIAL SYSTEMS FIRM GROWTH FIRM PERFORMANCE FIRM SIZE FIRM SIZES FIXED COST FIXED COSTS FOREIGN DIRECT INVESTMENT FOREIGN FIRM FOREIGN FIRMS FOREIGN OWNERS FOREIGN PARTNER FOREIGN PARTNERS FORMAL FINANCE GOVERNMENT SUBSIDIES INCOME INDIVIDUAL FIRM INFLATION INSECURE PROPERTY INSTITUTIONAL DEVELOPMENT INSTRUMENT INTERNATIONAL BANK INVESTMENT CLIMATE INVESTMENT CLIMATES INVESTMENT DECISIONS JOB CREATION JOINT VENTURE JOINT VENTURE PARTNER JOINT VENTURES JUDICIAL SYSTEM LABOR MARKET LACK OF COMPETITION LACK OF PROPERTY LACK OF TRANSPARENCY LAND TITLES LEGAL CONSTRAINTS LEGAL DEVELOPMENT LEGAL INFRASTRUCTURE LEGAL RIGHTS LEGAL SYSTEM LIMITED ACCESS LIMITED ACCESS TO FINANCE LOAN LOCAL FINANCIAL MARKETS MACROECONOMIC CONDITIONS MANUFACTURING INDUSTRIES MARKET CONDITIONS MARKET DISCIPLINE MARKET MECHANISMS MARKET REGULATIONS MARKET STRUCTURE MICROENTERPRISES MONETARY FUND MULTINATIONAL MULTINATIONAL CORPORATIONS MULTINATIONALS NEW PRODUCTS OUTPUT OVERHEAD COSTS PASTURES POLICY MAKERS POLITICAL ECONOMY POWER OUTAGES PREFERENTIAL ACCESS PRIVATE PARTIES PRODUCERS PRODUCTIVITY GROWTH PROPERTY RIGHTS PROPERTY RIGHTS PROTECTION REAL ESTATE RED TAPE REGULATORY BURDENS REGULATORY REQUIREMENTS RETURN RULE OF LAW SMALL ENTERPRISES SMALL FIRMS SME SOCIAL CAPITAL STATE OWNED ENTERPRISES SUPPLIERS TAXATION THEORETICAL MODELS TRACK RECORD TRADE LIBERALIZATION TRANSACTION TRANSACTION COSTS TRANSACTIONS COSTS TRANSPARENCY TURNOVER UNION WORLD DEVELOPMENT INDICATORS Size, age, sector, and productivity are commonly cited as factors determining a firm s survival. However, there are several dimensions of the investment climate in which the firm operates that affect whether it continues in business or exits. This paper uses new panel data from 27 Eastern European and Central Asian countries to test the importance of five areas of the business climate on firm exit: the efficiency of government services, access to finance, the extent of corruption or cronyism, the strength of property rights, and the degree of competition. The paper finds that weaknesses in these areas do affect the probability of firm exit largely in ways that undermine the Schumpeterian cleansing role of exit in raising overall productivity. Greater costs and regulatory burdens raise the probability that more productive firms exit, while less developed financial and legal institutions mitigate forces that would otherwise push less productive firms to exit. Thus, the more productive firms stand to gain the most from improvements in the investment climate, whether that is lowering transaction costs or improving market mechanisms. This holds both within countries and across countries. The impact of a particular investment climate measure can also differ significantly by type of firm, with the focus given to firm size. The differential impact on size can be significant at a size cutoff of 10 or more employees. As these are the firms that are near the threshold of many regulatory requirements, the implications are not just with regard to whether a firm remains in operation, but whether it does so in the formal sector. 2012-03-19T19:13:07Z 2012-03-19T19:13:07Z 2009-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091020154830 http://hdl.handle.net/10986/4276 English Policy Research working paper ; no. WPS 5084 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |