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The Regulation of Entry

Author

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  • Djankov, Simeon

    (Harvard U)

  • La Porta, Rafael
  • Lopez-de-Silanes, Florencio
  • Shleifer, Andrei

Abstract

Countries differ significantly in the way they regulate the entry of new businesses. In this paper, we describe the required procedures governing entry regulation, as well as the time and the cost of following theseprocedures, in seventy-five countries. We focus on legal requirements that need to be met before a business can officially open its doors, the official cost of meeting these requirements and the minimum time it takes to meet them if the government does not delay the process. We then use these data to evaluate three economic theories of regulation. We look at the official requirements, official cost, and official time -- and do not measure explicitly corruption and bureaucratic delays that further raise the cost of entry.

Suggested Citation

  • Djankov, Simeon & La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei, 2001. "The Regulation of Entry," Working Paper Series rwp01-015, Harvard University, John F. Kennedy School of Government.
    • Handle: RePEc:ecl:harjfk:rwp01-015
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    File URL: http://scholar.harvard.edu/files/shleifer/files/reg_entry.pdf
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    References listed on IDEAS

    as
    1. Djankov, Simeon & McLiesh, Caralee & Nenova, Tatiana & Shleifer, Andrei, 2003. "Who Owns the Media?," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 341-381, October.
    2. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
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    More about this item

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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