The Impact of the Financial Crisis on New Firm Registration

35 Pages Posted: 20 Apr 2016  

Leora F. Klapper

World Bank; World Bank - Development Research Group (DECRG)

Inessa Love

World Bank - Development Economics Data Group (DECDG)

Date Written: October 1, 2010

Abstract

The authors use panel data on the number of new firm registrations in 95 countries to study the impact of the business environment and 2008 financial crisis on new firm registration. The data show that more dynamic formal business creation occurs in countries that provide entrepreneurs with a stable legal and regulatory regime, fast and inexpensive business registration process, more flexible employment regulations, and low corporate taxes. The data also show that nearly all countries experienced a sharp drop in business entry during the crisis. This drop is more pronounced in countries with higher levels of financial development and countries more affected by the crisis.

Keywords: Governance Indicators, E-Business, Emerging Markets, Environmental Economics & Policies, Economic Theory & Research

Suggested Citation

Klapper, Leora F. and Love, Inessa, The Impact of the Financial Crisis on New Firm Registration (October 1, 2010). World Bank Policy Research Working Paper No. 5444. Available at SSRN: https://ssrn.com/abstract=1691286

Leora F. Klapper (Contact Author)

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States
202-473-8738 (Phone)

HOME PAGE: http://econ.worldbank.org/staff/lklapper

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Inessa Love

World Bank - Development Economics Data Group (DECDG) ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/ilove

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