New Firm Registration and the Business Cycle

Klapper, Leora ; Love, Inessa ; Randall, Douglas

World Bank, Washington, DC

关键词: ACCOUNT;    ACCOUNTS;    AGGREGATE DEMAND;    BUSINESS CYCLE;    BUSINESS CYCLES;   

DOI  :  10.1596/1813-9450-6775
RP-ID  :  WPS6775

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper uses new panel data on thenumber of new firm registrations in 109 countries during2002-2012 to study the relationship between entrepreneurshipand economic growth. The data show strong evidence of apro-cyclical pattern in entrepreneurship. An examination ofheterogeneous relationships between new firm registrationand the business cycle finds that higher levels of financialdevelopment and better business environments are associatedwith stronger pro-cyclicality of entrepreneurship bothacross countries and within countries over time. The resultsare robust to various measures of business regulation, suchas the cost and time of starting a new firm and closing aninsolvent firm. These findings suggest that fostering anefficient regulatory environment for the financial andprivate sector is important for encouraging a speedierrecovery in the formation of new firms during economicexpansions and aiding the efficient wind-down of insolventfirms during economic slowdowns.