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Entry Regulation and Business Start-Ups: Evidence from Mexico

41 Pages Posted: 6 Apr 2007  

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

Multiple version iconThere are 2 versions of this paper

Date Written: 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

Suggested Citation

Seira, Enrique and Kaplan, David S. and Piedra, Eduardo, Entry Regulation and Business Start-Ups: Evidence from Mexico (March 2007). Available at SSRN: https://ssrn.com/abstract=978863 or http://dx.doi.org/10.2139/ssrn.978863

Enrique Seira (Contact Author)

Stanford University - Department of Economics ( email )

Stanford, CA 94305
United States

David S. Kaplan

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

Av. Camino a Santa Teresa #930
Col. Heroes de Padierna
Mexico City, D.F. 10370
Mexico

Eduardo Piedra

University of Texas at Austin ( email )

Austin, TX 78712
United States

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