Business Environment and Firm Entry: Evidence From International Data

Using a comprehensive database of firms in Western and Eastern Europe, this paper studies how the business environment in a country drives the creation of new firms. The focus is on regulations governing entry. It finds entry regulations hamper entry, especially in industries that naturally should have high entry. Also, value added per employee in naturally "high entry" industries grows more slowly in countries with onerous regulations on entry.

Provided by: World Bank Group Topic: Software Date Added: Mar 2004 Format: PDF

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