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Business Environment and Firm Entry

Business Environment and Firm Entry
Author: Leora Klapper
Publisher: World Bank Publications
Total Pages: 60
Release: 2004
Genre: Business law
ISBN:

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"Using a comprehensive database of firms in Western and Eastern Europe, we study how the business environment in a country drives the creation of new firms. Our focus is on regulations governing entry. We find entry regulations hamper entry, especially in industries that naturally should have high entry. Also, value added per employee in naturally "high entry" industries grows more slowly in countries with onerous regulations on entry. Interestingly, regulatory entry barriers have no adverse effect on entry in corrupt countries, only in less corrupt ones. Taken together, the evidence suggests bureaucratic entry regulations are neither benign nor welfare improving. However, not all regulations inhibit entry. In particular, regulations that enhance the enforcement of intellectual property rights or those that lead to a better developed financial sector do lead to greater entry in industries that do more R & D or industries that need more external finance"--National Bureau of Economic Research web site.


Business Environment and Firm Entry

Business Environment and Firm Entry
Author: Leora Klapper
Publisher:
Total Pages:
Release: 2013
Genre:
ISBN:

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Using a comprehensive database of firms in Western and Eastern Europe, the authors study how the business environment in a country drives the creation of new firms. They focus on regulations governing entry, although they also examine the effects of a developed financial sector, a well-trained labor force, strong enforcement of intellectual property rights, and strict labor laws. The authors find entry regulations hamper entry, especially in industries that naturally should have high entry. They find that naturally "high entry" industries grow less, have lower profitability, and account for a lower share of the economy in countries with onerous regulations on entry. Also, value added per employee in naturally "high entry" industries grows more slowly in countries with onerous regulations on entry. This suggests entry regulations are neither benign nor welfare improving. The authors also find less entry into labor-intensive industries in countries with labor regulations that restrict the ability to fire workers. They do not imply that all regulations inhibit entry. In particular, regulations that enhance the enforcement of intellectual property rights or those that lead to a better developed financial sector do lead to greater entry in industries that do more research and development or industries that need more external finance. Finally, other aspects of the environment also matter: for instance, the general availability of skilled labor enhances entry in industries that require skilled labor.


Responsible Consumption and Production

Responsible Consumption and Production
Author: Walter Leal Filho
Publisher: Springer
Total Pages: 0
Release: 2020-03-04
Genre: Science
ISBN: 9783319957258

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The problems related to the process of industrialisation such as biodiversity depletion, climate change and a worsening of health and living conditions, especially but not only in developing countries, intensify. Therefore, there is an increasing need to search for integrated solutions to make development more sustainable. The United Nations has acknowledged the problem and approved the “2030 Agenda for Sustainable Development”. On 1st January 2016, the 17 Sustainable Development Goals (SDGs) of the Agenda officially came into force. These goals cover the three dimensions of sustainable development: economic growth, social inclusion and environmental protection. The Encyclopedia of the UN Sustainable Development Goals comprehensively addresses the SDGs in an integrated way. It encompasses 17 volumes, each one devoted to one of the 17 SDGs. This volume addresses SDG 12, namely "Ensure sustainable consumption and production patterns" and contains the description of a range of terms, which allows a better understanding and fosters knowledge. Concretely, the defined targets are: Implement the 10-Year Framework of Programmes on Sustainable Consumption and Production Patterns, all countries taking action, with developed countries taking the lead, taking into account the development and capabilities of developing countries Achieve the sustainable management and efficient use of natural resources Halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains, including post-harvest losses Achieve the environmentally sound management of chemicals and all wastes throughout their life cycle, in accordance with agreed international frameworks, and significantly reduce their release to air, water and soil in order to minimize their adverse impacts on human health and the environment Substantially reduce waste generation through prevention, reduction, recycling and reuse Encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle Promote public procurement practices that are sustainable, in accordance with national policies and priorities Ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature Support developing countries to strengthen their scientific and technological capacity to move towards more sustainable patterns of consumption and production Develop and implement tools to monitor sustainable development impacts for sustainable tourism that creates jobs and promotes local culture and products Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption by removing market distortions, in accordance with national circumstances, including by restructuring taxation and phasing out those harmful subsidies, where they exist, to reflect their environmental impacts, taking fully into account the specific needs and conditions of developing countries and minimizing the possible adverse impacts on their development in a manner that protects the poor and the affected communities Editorial Board Medani P. Bhandari, Luciana Londero Brandli, Morgane M. C. Fritz, Ulla A. Saari, Leonardo L. Sta Romana


Making It Big

Making It Big
Author: Andrea Ciani
Publisher: World Bank Publications
Total Pages: 178
Release: 2020-10-08
Genre: Business & Economics
ISBN: 1464815585

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Economic and social progress requires a diverse ecosystem of firms that play complementary roles. Making It Big: Why Developing Countries Need More Large Firms constitutes one of the most up-to-date assessments of how large firms are created in low- and middle-income countries and their role in development. It argues that large firms advance a range of development objectives in ways that other firms do not: large firms are more likely to innovate, export, and offer training and are more likely to adopt international standards of quality, among other contributions. Their particularities are closely associated with productivity advantages and translate into improved outcomes not only for their owners but also for their workers and for smaller enterprises in their value chains. The challenge for economic development, however, is that production does not reach economic scale in low- and middle-income countries. Why are large firms scarcer in developing countries? Drawing on a rare set of data from public and private sources, as well as proprietary data from the International Finance Corporation and case studies, this book shows that large firms are often born large—or with the attributes of largeness. In other words, what is distinct about them is often in place from day one of their operations. To fill the “missing top†? of the firm-size distribution with additional large firms, governments should support the creation of such firms by opening markets to greater competition. In low-income countries, this objective can be achieved through simple policy reorientation, such as breaking oligopolies, removing unnecessary restrictions to international trade and investment, and establishing strong rules to prevent the abuse of market power. Governments should also strive to ensure that private actors have the skills, technology, intelligence, infrastructure, and finance they need to create large ventures. Additionally, they should actively work to spread the benefits from production at scale across the largest possible number of market participants. This book seeks to bring frontier thinking and evidence on the role and origins of large firms to a wide range of readers, including academics, development practitioners and policy makers.


The Regulation of Entry

The Regulation of Entry
Author: Simeon Djankov
Publisher:
Total Pages: 56
Release: 2001
Genre: Barriers to entry (Industrial organization)
ISBN:

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New data show that countries that regulate the entry of new firms more heavily have greater corruption and larger unofficial economies, but not better quality goods. The evidence supports the view that regulating entry benefits politicians and bureacrats.


Understanding Business Dynamics

Understanding Business Dynamics
Author: National Research Council
Publisher: National Academies Press
Total Pages: 200
Release: 2007-04-05
Genre: Social Science
ISBN: 030916446X

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The U.S. economy is highly dynamic: businesses open and close, workers switch jobs and start new enterprises, and innovative technologies redefine the workplace and enhance productivity. With globalization markets have also become more interconnected. Measuring business activity in this rapidly evolving environment increasingly requires tracking complex interactions among firms, establishments, employers, and employees. Understanding Business Dynamics presents strategies for improving the accuracy, timeliness, coverage, and integration of data that are used in constructing aggregate economic statistics, as well as in microlevel analyses of topics ranging from job creation and destruction and firm entry and exit to innovation and productivity. This book offers recommendations that could be enacted by federal statistical agencies to modernize the measurement of business dynamics, particularly the production of information on small and young firms that can have a disproportionately large impact in rapidly expanding economic sectors. It also outlines the need for effective coordination of existing survey and administrative data sources, which is essential to improving the depth and coverage of business data.


Firm Size and the Business Environment

Firm Size and the Business Environment
Author: Mirjam Schiffer
Publisher: World Bank Publications
Total Pages: 68
Release: 2001-01-01
Genre: Business & Economics
ISBN: 9780821350034

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The development of the small and medium enterprise sector is deemed crucial for economic growth and poverty alleviation. Such firms are often though to be at a disadvantage when compared with larger enterprises, but the reverse can apply, for example in the more flexible approach of the smaller firm. This paper draws on a private sector survey in 80 countries examining whether business obstacles are related to firm size. It finds a bias against small firms, which experience significantly greater problems than large firms with financing, taxes and regulations, inflation, corruption and street crime. These problems should be the prime targets of policies aimed at reducing inequity.


Entry Barriers and Market Entry Decisions

Entry Barriers and Market Entry Decisions
Author: Fahri Karakaya
Publisher: Praeger
Total Pages: 230
Release: 1991-12-10
Genre: Business & Economics
ISBN:

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This book provides a comprehensive discussion of market entry barriers in both early and late market entry situations. Barriers in consumer as well as industrial markets are compared, and the advantages of creating as well as overcoming entry barriers are examined. The authors also discuss international market entry barriers and how they can be overcome by presenting actual case histories of successful strategies. The vital role of managerial consensus on market entry in the face of entry barriers is explored, and the book concludes with two Appendices that provide detailed market entry simulation exercises for both domestic and international market entry situations.


Business Environment and Labor Market Outcomes in ECA Countries

Business Environment and Labor Market Outcomes in ECA Countries
Author: Paloma Lopez-Garcia
Publisher:
Total Pages: 44
Release: 2006
Genre: Microfinance
ISBN:

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New firm entry has been fundamental for job creation in the transition economies. Hence, the urge to reform the framework in which firms operate. This paper aims to improve our understanding of the business environment of the Europe and Central Asia (ECA) countries, as well as to assess which of the institutions that shape it are most important for labor market performance. To achieve that aim, the author groups the institutions into those affecting firm entry and those affecting business survival and growth, and proceeds to construct indicators to summarize them. Next, she analyzes the impact of the business environment institutions on the employment generated by the private sector of the countries, proxied by the service employment rate. The regression analysis uses an unbalanced panel of 28 ECA countries over 14 years-from 1988 to 2002. Recent literature on the labor market performance of the OECD countries argues that what matters for employment is the interaction between institutions and shocks. Accordingly, the explanatory variables used in the regression are the interactions between the transition shock suffered by the ECA countries and each of the business environment institutions previously defined. The author finds that access to finance is the most important institution across all ECA countries. The development of the financial sector can explain about 40 percent of private employment creation in the European transition economies according to the model. On the other hand, the poor access to finance in Bulgaria, Croatia, and above all, Romania, is the main factor behind their poor development of the private sector. Market regulation (credit and labor regulation), start-up costs, and the tax burden are all found to significantly affect employment as well.