The Impact of the Financial Crisis on New Firm Registration

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 entrepreneurs with 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.

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Bibliographic Details
Main Authors: Love, Inessa, Klapper, Leora
Language:English
Published: 2010-10-01
Subjects:ACCOUNTABILITY, BANK CREDIT, BANKRUPTCY, BARRIER, BARRIERS TO ENTRY, BUSINESS ECONOMICS, BUSINESS ENTRY, BUSINESS ENVIRONMENT, BUSINESS REGISTRATION, BUSINESS REGISTRATIONS, BUSINESS STRATEGY, BUSINESSES, CAPABILITIES, CHAMBERS OF COMMERCE, CORPORATE TAX, CORPORATE TAXES, CORRELATION MATRIX, CORRUPTION, COUNTRY CHARACTERISTICS, COUNTRY DATA, COUNTRY FIXED EFFECTS, COUNTRY-LEVEL INDICATOR, CREDIT RATING, CREDIT RATIONING, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING ECONOMIES, DOMESTIC ECONOMY, E-MAIL, ECONOMIC CENSUSES, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC STRUCTURES, ECONOMIC SYSTEMS, ENTRY POINT, EVOLUTIONARY ECONOMICS, EXCHANGE RATE, EXPLOITATION, EXTERNAL FINANCE, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL INFORMATION, FINANCIAL MARKETS, FINANCIAL REPORTS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FIRM GROWTH, GDP, GDP PER CAPITA, GLOBALIZATION, GOVERNANCE INDICATORS, GOVERNANCE MEASURES, GOVERNMENT EFFECTIVENESS, GOVERNMENT ENTITY, GROWTH RATE, GROWTH RATES, INCOME, INCOME GROUP, INCOME GROUPS, INCOME LEVEL, INCOME LEVELS, INFORMAL ECONOMY, INSTITUTIONAL INVESTOR, INSTITUTIONAL QUALITY, INTEREST RATES, INVESTMENT CLIMATE, JOB CREATION, LEGAL CONSTRAINTS, LEGAL REGIMES, LEGAL SYSTEMS, LESS DEVELOPED COUNTRIES, LIMITED LIABILITY COMPANIES, LOCAL BUSINESS, LOW INCOME COUNTRIES, LOW-INCOME COUNTRIES, LOWER INCOME COUNTRIES, MACROECONOMIC VARIABLES, MARKET ECONOMY, MARKET ENTRY, METADATA, MIDDLE INCOME COUNTRIES, OIL, PHONE, POLITICAL STABILITY, PRIVATE EQUITY, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, RED TAPE, REGISTRIES, REGISTRY, REGULATORY ENVIRONMENT, REGULATORY QUALITY, REGULATORY REGIME, RESULT, RESULTS, RULE OF LAW, SMALL BUSINESS, STANDARD UNIT OF MEASUREMENT, STARTUPS, STOCK PRICE, TAX RATE, TAXATION, TIME FRAME, TRANSMISSION, TURNOVER, USES, WEB, WORLD DEVELOPMENT INDICATORS,
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101012085129
https://hdl.handle.net/10986/3926
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