The Effect of Ease of Doing Business on Firm Creation

Tristan Canare

Annals of Economics and Finance, 2018, vol. 19, issue 2, 555-584

Abstract: This paper looked at the effect of ease of doing business on firm creation. Using a nine-year panel data of about 120 countries from the World Bank's Ease of Doing Business Reports, results suggest that overall ease of doing business has a positive effect on business creation. This relationship is most strongly driven by the Starting a Business component, but Paying Taxes is also important. In addition, the effect of the Starting a Business component is driven by the financial cost rather than the time and administrative cost. Finally, results change when the analysis is applied to non-high-income countries only.

Keywords: Ease of doing business; Cost of doing business; Firm creation; System GMM; Panel data (search for similar items in EconPapers)
JEL-codes: O11 O17 O43 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:cuf:journl:y:2018:v:19:i:2:canare

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