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The impact of the financial crisis on new firm registration

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  • Klapper, Leora
  • Love, Inessa

Abstract

The authors use panel data on the number of new firm registrations in 95 countries to study the impact of the business environment and 2008 financial crisis on new firm registration. The data show that more dynamic formal business creation occurs in countries that provide entrepreneurswith a stable legal and regulatory regime, fast and inexpensive business registration process, more flexible employment regulations, and low corporate taxes. The data also show that nearly all countries experienced a sharp drop in business entry during the crisis. This drop is more pronounced in countries with higher levels of financial development and countries more affected by the crisis.

Suggested Citation

  • Klapper, Leora & Love, Inessa, 2010. "The impact of the financial crisis on new firm registration," Policy Research Working Paper Series 5444, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5444
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    References listed on IDEAS

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    1. Da Rin, Marco & Di Giacomo, Marina & Sembenelli, Alessandro, 2011. "Entrepreneurship, firm entry, and the taxation of corporate income: Evidence from Europe," Journal of Public Economics, Elsevier, vol. 95(9), pages 1048-1066.
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    Keywords

    Governance Indicators; E-Business; Emerging Markets; Environmental Economics&Policies; Economic Theory&Research;
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