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Article
The Regulation of Entry
Quarterly Journal of Economics (2002)
  • Florencio López de Silanes, Universiteit van Amsterdam
  • Simeon Djankov , World Bank
  • Rafael La Porta
  • Andrei Shleifer
Abstract
We present new data on the regulation of entry of start-up firms in 85 countries. The data covers the number of procedures, official time, and official cost that a start-up must bear before it can operate legally. The official costs of entry are extremely high in most countries. Countries with heavier regulation of entry have higher corruption and larger unofficial economies, but not better quality of public or private goods. Countries with more democratic and limited governments have lighter regulation of entry. The evidence is inconsistent with public interest theories of regulation, but supports the public choice view that entry regulation benefits politicians and bureaucrats.
Disciplines
Publication Date
2002
Citation Information
Florencio López de Silanes, Simeon Djankov, Rafael La Porta and Andrei Shleifer. "The Regulation of Entry" Quarterly Journal of Economics Vol. 118 (2002)
Available at: http://works.bepress.com/florencio_lopez_de_silanes/10/