Publication:
An Open Door for Firms

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Date
2010-06
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Published
2010-06
Abstract
World Bank Group client governments as well as donors often ask about the effects of business entry reforms and the persistence of those effects. Four clear findings emerge from existing research. First, more firms enter the market when registration procedures and costs are cut. Second, a large percentage of new firms survive and grow. Third, new firms increase competition, forcing incumbents to become more efficient or to exit the market and boosting overall productivity and investment. Finally, entry reforms have greater impacts when coupled with other investment climate reforms.
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Motta, Marialisa; Oviedo, Ana Maria; Santini, Massimiliano. 2010. An Open Door for Firms. Viewpoint: Public Policy for the Private Sector; Note No. 323. © World Bank, Washington, DC. http://hdl.handle.net/10986/11086 License: CC BY 3.0 IGO.
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