Entry regulation and business start-ups: Evidence from Mexico

David Kaplan, Eduardo Piedra and Enrique Seira

Journal of Public Economics, 2011, vol. 95, issue 11, 1501-1515

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 5% per month in eligible industries, and we present evidence supporting robustness and a causal effect interpretation. Most of the effect is temporary, concentrated in the first 15months after implementation. The estimated effect is much smaller than World Bank and Mexican authorities claim it is, which suggests attention in business deregulation may be over emphasized.

Keywords: Firm start-ups; Regulation; Informal sector; Program evaluation (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (86)

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Working Paper: Entry regulation and business start-ups: evidence from Mexico (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:95:y:2011:i:11:p:1501-1515

DOI: 10.1016/j.jpubeco.2011.03.007

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