Business Environment and FirmEntry : Evidence from International Data

Klapper, Leora ; Laeven, Luc ; Rajan, Raghuram

World Bank, Washington, D.C.

关键词: BUSINESS ENVIRONMENT;    ENTERPRISES;    BUSINESS MANAGEMENT;    TRADE REGULATION;    LABOR FORCE;   

DOI  :  10.1596/1813-9450-3232
RP-ID  :  WPS3232

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Using a comprehensive database of firmsin Western and Eastern Europe, the authors study how thebusiness environment in a country drives the creation of newfirms. They focus on regulations governing entry, althoughthey also examine the effects of a developed financialsector, a well-trained labor force, strong enforcement ofintellectual property rights, and strict labor laws. Theauthors find entry regulations hamper entry, especially inindustries that naturally should have high entry. They findthat naturally "high entry" industries grow less,have lower profitability, and account for a lower share ofthe economy in countries with onerous regulations on entry.Also, value added per employee in naturally "highentry" industries grows more slowly in countries withonerous regulations on entry. This suggests entryregulations are neither benign nor welfare improving. Theauthors also find less entry into labor-intensive industriesin countries with labor regulations that restrict theability to fire workers. They do not imply that allregulations inhibit entry. In particular, regulations thatenhance the enforcement of intellectual property rights orthose that lead to a better developed financial sector dolead to greater entry in industries that do more researchand development or industries that need more externalfinance. Finally, other aspects of the environment alsomatter: for instance, the general availability of skilledlabor enhances entry in industries that require skilled labor.