Red tape and delayed entry

Antonio Ciccone and Elias Papaioannou

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: Does cutting red tape foster entrepreneurship in industries with the potential to expand? We address this question by combining the time needed to comply with government entry procedures in 45 countries with industry-level data on employment growth and growth in the number of establishments during the 1980s. Our main empirical finding is that countries where it takes less time to register new businesses have seen more entry in industries that experienced expansionary global demand and technology shifts. Our estimates take into account that proxying global industry shifts using data from only one country–or group of countries with similar entry regulations–will in general yield biased results.

Keywords: Entry regulation; entry; globally expanding industries (search for similar items in EconPapers)
JEL-codes: E6 F43 L16 L5 L60 (search for similar items in EconPapers)
Date: 2006-11
New Economics Papers: this item is included in nep-com, nep-ent and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Related works:
Journal Article: Red Tape and Delayed Entry (2007)
Working Paper: Red tape and delayed entry (2007)
Working Paper: Red Tape and Delayed Entry (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:985

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