The Impact of Business Environment Reforms on New Firm Registration

52 Pages Posted: 20 Apr 2016

See all articles by Leora F. Klapper

Leora F. Klapper

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

Inessa Love

World Bank - Development Economics Data Group (DECDG)

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2010

Abstract

This paper uses panel data on the number of new firm registrations in 91 countries to study how the ease of registering a business and the magnitude of registration reforms affect new firm registrations. The authors find that the costs, days and procedures required to start a business are important predictors of the number of new firm registrations. However, they find that small reforms, in general less than a 40 percent reduction in procedures or 50 to 60 percent reduction in costs and days, do not have a significant effect on new registrations. They also find important synergies in multiple reforms of two or more business environment indicators. Finally, they show that countries with relatively weaker business environments prior to reforms require relatively larger reforms in order to impact the number of newly registered firms.

Keywords: Environmental Economics & Policies, E-Business, Enterprise Development & Reform, Competitiveness and Competition Policy, Business in Development

Suggested Citation

Klapper, Leora F. and Love, Inessa, The Impact of Business Environment Reforms on New Firm Registration (December 1, 2010). World Bank Policy Research Working Paper No. 5493. Available at SSRN: https://ssrn.com/abstract=1721331

Leora F. Klapper (Contact Author)

World Bank ( email )

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