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DP7080 The Regulation of Entry: A Survey

Author(s): Simeon Djankov
Publication Date: December 2008
Keyword(s): business entry , productivity , regulatory reform
JEL(s): O13
Programme Areas: Development Economics
Link to this Page: www.cepr.org/pubs/dps/DP7080.asp.asp


Simplifying entry regulation has been a popular reform since the publication of Djankov et al (2002). The inclusion of business entry indicators in the World Bank’s Doing Business project has led to an acceleration in reform: in 2003-2008, 193 reforms took place in 116 countries. A large academic literature has followed: 195 academic articles have used the data compiled in Djankov et al and subsequently by the World Bank. This paper identifies three theories on why some countries impose burdensome entry requirements. It also surveys the literature on the effects of making business entry easier.


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