Business environment and firm entry
Subtitle: evidence from international data
By: Leora Klapper, Luc Laeven, Raghuram Rajan.
Contributors: Laeven, Luc.; Rajan, Raghuram.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10380; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10380.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: New business enterprises -- Europe.; Barriers to entry (Industrial organization) -- Europe.; Trade regulation -- Europe.
Description: "Using a comprehensive database of firms in Western and Eastern Europe, we study how the business environment in a country drives the creation of new firms.  Our focus is on regulations governing entry.  We find entry regulations hamper entry, especially in industries that naturally should have high entry.  Also, value added per employee in naturally "high entry" industries grows more slowly in countries with onerous regulations on entry.  Interestingly, regulatory entry barriers have no adverse effect on entry in corrupt countries, only in less corrupt ones.  Taken together, the evidence suggests bureaucratic entry regulations are neither benign nor welfare improving.  However, not 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 R&D or industries that need more external finance"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.