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The Efficiency of EU Public Administration in Helping Firms Grow

Author

Listed:
  • Klaus S. Friesenbichler
  • Oliver Fritz
  • Werner Hölzl
  • Gerhard Streicher
  • Florian Misch
  • Mustafa Yeter

    (Centre for European Economic Research)

Abstract

This study links public sector efficiency to firm growth via several microeconomic channels. The results show that greater public administration efficiency induces higher rates of fast growing firms. Especially corruption and ineffective justice systems were identified as the factors that most impede firms' growth. In addition, public service provision that relies on fees rather than on taxes was associated with higher efficiency.

Suggested Citation

  • Klaus S. Friesenbichler & Oliver Fritz & Werner Hölzl & Gerhard Streicher & Florian Misch & Mustafa Yeter, 2014. "The Efficiency of EU Public Administration in Helping Firms Grow," WIFO Studies, WIFO, number 50931.
  • Handle: RePEc:wfo:wstudy:50931
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    File URL: https://www.wifo.ac.at/wwa/pubid/50931
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    References listed on IDEAS

    as
    1. Carlin, Wendy & Schaffer, Mark & Seabright, Paul, 2013. "Soviet power plus electrification: What is the long-run legacy of communism?," Explorations in Economic History, Elsevier, vol. 50(1), pages 116-147.
    2. Florian Misch & Norman Gemmell & Richard Kneller, 2014. "Using surveys of business perceptions as a guide to growth-enhancing fiscal reforms," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 22(4), pages 683-725, October.
    3. World Bank & International Finance Corporation, "undated". "Doing Business 2014 Economy Profile : Italy," World Bank Other Operational Studies 18495, The World Bank.
    4. Runt Veenhoven, 2002. "Why Social Policy Needs Subjective Indicators," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 58(1), pages 33-46, June.
    5. Thorsten Beck & Asli Demirgüç‐Kunt & Vojislav Maksimovic, 2005. "Financial and Legal Constraints to Growth: Does Firm Size Matter?," Journal of Finance, American Finance Association, vol. 60(1), pages 137-177, February.
    6. Pissarides, Francesca & Singer, Miroslav & Svejnar, Jan, 2003. "Objectives and constraints of entrepreneurs: evidence from small and medium size enterprises in Russia and Bulgaria," Journal of Comparative Economics, Elsevier, vol. 31(3), pages 503-531, September.
    7. Meghana Ayyagari & Asli Demirgüç-Kunt & Vojislav Maksimovic, 2008. "How Important Are Financing Constraints? The Role of Finance in the Business Environment," World Bank Economic Review, World Bank Group, vol. 22(3), pages 483-516, November.
    8. Simon Commander & Jan Svejnar, 2011. "Business Environment, Exports, Ownership, and Firm Performance," The Review of Economics and Statistics, MIT Press, vol. 93(1), pages 309-337, February.
    9. Desai, Raj M. & Olofsgård, Anders, 2011. "The Costs of Political Influence: Firm-Level Evidence From Developing Countries," Quarterly Journal of Political Science, now publishers, vol. 6(2), pages 137-178, September.
    10. Carlin, Wendy & Schaffer, Mark E & Seabright, Paul, 2010. "A Framework for Cross-Country Comparisons of Public Infrastructure Constraints on Firm Growth," CEPR Discussion Papers 7662, C.E.P.R. Discussion Papers.
    11. Sendhil Mullainathan & Marianne Bertrand, 2001. "Do People Mean What They Say? Implications for Subjective Survey Data," American Economic Review, American Economic Association, vol. 91(2), pages 67-72, May.
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    Cited by:

    1. Michael Böheim & Klaus S. Friesenbichler, 2014. "Does Accession to the European Union Foster Competition Policy? Country-level Evidence," WIFO Working Papers 491, WIFO.
    2. repec:wfo:wstudy:59184 is not listed on IDEAS

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