Entry Regulation and Business Start-Ups: Evidence from Mexico

Kaplan, David S.; Piedra, Eduardo; Seira, Enrique

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Entry Regulation and Business Start-Ups: Evidence from Mexico

World Bank Policy Research Working Paper No. 4322

43 Pages Posted: 20 Apr 2016

See all articles by David S. Kaplan

David S. Kaplan

Instituto Tecnologico Autonomo de Mexico - Departamento de Economia and Centro de Investigacion Economica

Enrique Seira

Stanford University - Department of Economics

There are 2 versions of this paper

Date Written: June 2007

Abstract

The authors 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. Authors estimates suggest that new start-ups increased by about 4 percent in eligible industries, and the authors 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. The authors find that the program was more effective in municipalities with less corruption and cheaper additional procedures.

Keywords: Corporate Law, Microfinance, Regional Governance, Urban Governance and Management, Urban Partnerships & Poverty

Suggested Citation: Suggested Citation

Kaplan, David S. and Piedra, Eduardo and Seira, Enrique, Entry Regulation and Business Start-Ups: Evidence from Mexico (June 2007). World Bank Policy Research Working Paper No. 4322, Available at SSRN: https://ssrn.com/abstract=1007607