Entry regulation and business start-ups: evidence from Mexico

David Scott Kaplan (), Eduardo Piedra and Enrique Seira

No 4322, Policy Research Working Paper Series from The World Bank

Abstract: The authors 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. Authors estimates suggest that new start-ups increased by about 4 percent in eligible industries, and the authors 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. The authors find that the program was more effective in municipalities with less corruption and cheaper additional procedures.

Keywords: Corporate Law; Microfinance; Regional Governance; Urban Governance and Management; Urban Partnerships&Poverty (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-dev and nep-reg
Date: 2007-08-01
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Related works:
Working Paper: Are Burdensome Registration Procedures an Important Barrier on Firm Creation? Evidence from Mexico
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Persistent link: http://EconPapers.repec.org/RePEc:wbk:wbrwps:4322

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