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The Regulatory Environment and SMMEs. Evidence from South African Firm Level Data

  • Neil Rankin

    ()

    (University of the Witwatersrand, South Africa)

The paper specifically examines: labour regulations and their relationship with employment and investment; trade regulations; permits and licences for businesses; visa regulations; the predictability of regulatory application; and the costs of regulation. It also investigates the ways firms respond to regulations. There is evidence that these regulations constrain firm growth, particularly among smaller firms. Labour regulations are not the only type of regulations that have a disproportional effect on smaller firms. Government regulation comes in many forms, such as tax regulation, labour regulation and regulations concerning the import and export of goods. This paper uses data gathered from a number of South African firm-level surveys to investigate how government regulations impact on firms. In many cases firms are asked about the perceived impact of regulations. This places regulation in context.

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File URL: http://www.dpru.uct.ac.za/sites/default/files/image_tool/images/36/DPRU%20WP06-113.pdf
File Function: First version, 2006
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Paper provided by University of Cape Town, Development Policy Research Unit in its series Working Papers with number 06113.

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Length: 82 pages
Date of creation: Sep 2006
Date of revision:
Publication status: Published in Working Paper Series by the Development Policy Research Unit, September 2006, pages 1-82
Handle: RePEc:ctw:wpaper:06113
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References listed on IDEAS
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  1. Johannes Fedderke & Chandana Kularatne & Martine Mariotti, 2007. "Mark-up Pricing in South African Industry," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 16(1), pages 28-69, January.
  2. Rankin, Neil A., 2001. "The export behaviour of South African manufacturing firms," MPRA Paper 16904, University Library of Munich, Germany.
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