|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/26058
|
| | |
| Title: | | Greasing the wheels of entrepreneurship?: the impact of regulations and corruption on firm entry  |
| Authors: | | Dreher, Axel Gassebner, Martin |
| Issue Date: | | 2007 |
| Series/Report no.: | | CESifo working paper 2013 |
| Abstract: | | The paper investigates whether the impact of regulations on entrepreneurship depends on corruption. We first test whether regulations robustly deter firm entry into the markets. Our results show that some regulations are indeed important determinants of entrepreneurial activity. Specifically, more procedures required to start a business and larger minimum capital requirements are detrimental to entrepreneurship. Second, we test whether corruption reduces the negative impact of regulations on entrepreneurship in highly regulated economies. Our empirical analysis for a maximum of 43 countries over the period 2003-2005 shows that corruption is beneficial in highly regulated economies. At the maximum level of regulation among our sample of countries, corruption significantly increases entrepreneurial activity. Our results thus provide support for the grease the wheels hypothesis. |
| JEL: | | D73 F59 M13 L26 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/26058
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|