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The impact of doing business regulations on investments in ICT

Author

Listed:
  • Vahagn Jerbashian

    (Universitat de Barcelona
    CERGE-EI)

  • Anna Kochanova

    (Max Planck Institute for Research on Collective Goods)

Abstract

Using industry-level data from 14 OECD countries and doing business indicators of the World Bank, we analyze how country-level regulations of business activities affect investments in information and communication technologies (ICT). We find that investments in ICT decrease with the costs of starting and operating a business and registering property. Investments increase with the strength of legal rights. We also find that investments in software increase with the ability of shareholders to sue managers for misconduct, and investments in communication technologies decline with the extent of director liability for self-dealing.

Suggested Citation

  • Vahagn Jerbashian & Anna Kochanova, 2016. "The impact of doing business regulations on investments in ICT," Empirical Economics, Springer, vol. 50(3), pages 991-1008, May.
    • Handle: RePEc:spr:empeco:v:50:y:2016:i:3:d:10.1007_s00181-015-0953-8
    DOI: 10.1007/s00181-015-0953-8
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    Cited by:

    1. Leonzio Rizzo & Alejandro Esteller - Moré & Riccardo Secomandi, 2020. "The role of tax system complexity on foreign direct investment allocation," Working Papers 2020029, University of Ferrara, Department of Economics.
    2. Vahagn Jerbashian, 2019. "Automation and Job Polarization: On the Decline of Middling Occupations in Europe," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(5), pages 1095-1116, October.
    3. Ramalho,Rita & Saltane,Valentina, 2019. "Does Media Stimulate Reform Efforts ?," Policy Research Working Paper Series 8984, The World Bank.
    4. Jerbashian, Vahagn, 2021. "Trade in information technologies and changes in the demand for occupations," China Economic Review, Elsevier, vol. 67(C).
    5. Olga N. Kusakina & Natalia V. Bannikova & Svetlana S. Morkovina & Tatiana N. Litvinova, 2016. "State Stimulation of Development of Small Entrepreneurship in Developing Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 276-284.
    6. Jerbashian, Vahagn & Vilalta-Bufi, Montserrat, 2020. "The Impact of ICT on Working from Home: Evidence from EU Countries," GLO Discussion Paper Series 719, Global Labor Organization (GLO).
    7. Kochanova,Anna & Hasnain,Zahid & Larson,Bradley Robert, 2016. "Does e-government improve government capacity ? evidence from tax administration and public procurement," Policy Research Working Paper Series 7657, The World Bank.

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    More about this item

    Keywords

    Investments in ICT; Regulations of doing business; Empirical evidence;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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