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Entry Regulation and Business Start-Ups: Evidence from Mexico
Enrique Seira Stanford University - Department of Economics David S. Kaplan Instituto Tecnologico Autonomo de Mexico - Departamento de Economia and Centro de Investigacion Economica Eduardo Piedra University of Texas at Austin March 2007 Abstract: We estimate the effect on business start-ups of a program that significantly speeds up firm registration procedures. The program was implemented in Mexico in different municipalities at different dates. Our estimates suggest that new start-ups increased by about 4% in eligible industries, and we present evidence that this is a causal effect. Most of the effect is temporary, concentrated in the first 10 months after implementation. The effect is robust to several specifications of the benchmark control group time trends. We find that the program was more effective in municipalities with less corruption and cheaper additional procedures.
Keywords: Firm Start-Ups, Regulation, Informal Sector, Program Evaluation Working Paper SeriesDate posted: April 06, 2007 ; Last revised: October 26, 2007Suggested CitationContact Information
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