The Effect of Ease of Doing Business on Firm Creation
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 m...
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| Format: | text |
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Archīum Ateneo
2018
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| Online Access: | https://archium.ateneo.edu/economics-faculty-pubs/61 http://aeconf.com/Articles/Nov2018/aef190207.pdf |
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| Institution: | Ateneo De Manila University |
| Summary: | 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. |
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