Entry rates, Entry Costs and Government Quality in EU Regions
Sara Amoroso, German Institute for Economic Research, Berlin (DIW Berlin)
About the seminar
Firm creation is an important channel of economic development. However, excessive governmental regulations increase the cost of starting a firm. In this paper, we estimate the relationship between startup costs and regional firm entry rates, i.e., the fraction of new firms to the total number of firms, and we investigate the role of regional governments quality in mitigating the negative effects of such costs on regional firm entry rates in Europe.
Using data from Eurostat, OECD, WEF, the World Bank, and Gothenburg University, we find that the costs and days required to start a business are important predictors of firm entry rates. We also find that in regions with a higher quality of government, costs have a less negative effect on entry rates compared to regions with lower quality of government. Our findings contribute to the debate on the effects of regulations on firm entry and offer insights on how heterogeneous institutional quality is the often-unspoken barrier to fair business competition.
Zoom link to join online:
https://unu-merit-eu.zoom.us/j/85130622264?pwd=dFJjcVZEUUFhV2FrSFB4T0JLZWVndz09
About the speaker
Sara Amoroso is a Research Associate at DIW Berlin (German Institute for Economic Research)
Formerly applied economist at the Joint research Centre of the European Commission. International Expert at the United Nations Industrial Development Organization (UNIDO) and economic consultant for DG GROW. Associate editor at Journal of Technology transfer.
Her main research interests include empirical industrial organization, entrepreneurship, science and technology policy, foreign direct investment, and most recently new institutional economics.
Venue: Room 0.18, Boschstraat 24, Maastricht (UNU-MERIT) and Online
Date: 23 May 2024
Time: 12:00 - 13:00 CEST