The Role of Regulation on Entry

• Tác giả: Francesco Bripi
• Ngôn ngữ: eng
• Ký hiệu phân loại: 341.24 Regional organizations
• Thông tin xuất bản: Published by Oxford University Press on behalf of the World Bank, 2018
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 290755
• Chủ đề: 1. ADMINISTRATIVE PROCEDURES; 2. BUSINESS ENVIRONMENT; 3. FIRM ENTRY; 4. REGULATION

Tóm tắt

This paper studies the effects of differences in local administrative burdens in Italy in the years 2005-2007 preceding a major reform that sped up firm registration procedures. Combining regulatory data from a survey on Italian provinces before the reform (costs and time to start a business) with industry-level entry rates of limited liability firms, I explore the effects of regulatory barriers on the average of the annual entry rates across industries with different natural propensities to enter the market. The estimates of the cross-sectional analysis show that lengthier and, to some extent, more costly procedures reduced entry in sectors with naturally high entry. A one-day delay in registration procedures reduces the entry rate in highly dynamic sectors by more than 1 percent. These results hold when I include measures of local financial development and of efficiency of bankruptcy procedures.