Entry regulation and business start-ups : evidence from Mexico

By David S. Kaplan, Eduardo Piedra, Enrique Seira. 2007

246 citations recorded by the source corpus.

The authors estimate the effect on business start-ups of a program that significantly speeds up firm registration procedures. The program was implemented in Mexico in different municipalities at different dates. Authors estimates suggest that new start-ups increased by about 4 percent in eligible industries, and the authors present evidence that this is a causal effect. Most of the effect is temporary, concentrated in the first 10 months after implementation. The effect is robust to several specifications of the benchmark control group time trends. The authors find that the program was more effective in municipalities with less corruption and cheaper additional procedures.

Subfields: Accounting, Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/4192c6e523fa9ddf358a91be5e4f8812f81292bb

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Citations in the corpus

Does corruption ever help entrepreneurship? (2016, unknown): “One way to handle endogeneity and omitted variable bias concerns instrumental variable (IV) strategy can be employed. In this context, Persson and Tabellini (2006) point out that it is a daunting task to find strictly exogenous instruments for regressions with country fixed effects.”
The Demand for, and Consequences of, Formalization Among Informal Firms in Sri Lanka (2012, unknown): “Bruhn (2011) and Kaplan et al. (2011) study a reform in Mexico which”
Do Entry Regulations Deter Entrepreneurship and Job Creation? Evidence from Recent Reforms in Portugal (2014, methodology): “In this regard our analysis of the Portuguese regulatory reform is similar to the assessment of the 2002 Mexican regulatory reform by Kaplan et al. (2011).”
Do Interventions Targeted at Micro-Entrepreneurs and Small and Medium-Sized Firms Create Jobs? A Systematic Review of the Evidence for Low and Middle Income Countries (2014, background): “…Brazil (urban) Micro no Quasiexperimental: RDD, IV and DID up to 1 year E – all microfirms: positive E – firms with at least one employee: positive Kaplan et al. (2011) Federal program targeted at municipalities that ‘one-stop’ firm registration offices allowing small firms to obtain a…”
Improvements in the World Bank's Ease of Doing Business Rankings: Do they Translate into Greater Foreign Direct Investment Inflows? (2011, result): “This hypothesis is given stronger credence by the fact that Aghion, Philippe, Blundell, Griffith Howitt and Prantl (2008) and Kaplan, Piedra, and Seira (2007) suggest that a combination of reforms has greater impact than business entry reforms in isolation.”
Firms, Informality, and Development: Theory and Evidence from Brazil (2018, background): “The firm-level results are related to a literature stream that uses micro data to analyze the impact of different formalization policies in developing countries, among others: Monteiro and Assunção (2012) and Fajnzylber et al.”