Formas alotrópicas del carbono

a positive impact on investment, employment, and economic growth.

92. As noted above, IFC is working with other parts of the WBG to undertake a review of the literature on the economic impact of investment climate reform. The studies cited in the literature reviews that have been done to date employ a variety of analytical techniques, ranging from quasi-experimental designs involving firm-level panel data to cross-sectional country comparisons. Some of the studies are quite robust, others less so. Taken as a whole, the studies suggest that investment climate reforms in the selected topics may have substantial impacts on private sector investment, business formation and growth, employment growth, productivity, and/or firm performance.

93. For example, Table 32 summarizes the results of the literature review on the impact of simplifying regulations related to starting a business. (This topic accounts for 30% of all reforms reported in FY08-11.) The studies conclude that reforms have yielded gains along various dimensions of economic performance; however, the magnitude of the improvements varies by indicator and country.

Table 32. Summary of Key Findings from the Literature on Business Entry Reforms

Country Author Methodology Reform (explanatory variable) Impact

Colombia Cardenas and Rozo (2007)

Microeconomic study. 6 municipalities. OLS regression with treatment / control group. Years: 2000-2005 (full data set), June 2001-June 2004 (introduction of CAE).

Introduction of a one stop shop (CAE program). /a

Increase of 5.2% in the creation of new firms India Aghion et al. (2008) Microeconomic study. 16 states, 64 industries. Differences-in-differences, various econometric specifications (including IV). Years: 1980-1997.

Elimination of license Raj Increase of 6% in the creation of new firms

Increase of 17.8% in Real output in industries in “pro-employer states” vs. industries in “pro-worker” states /b Mexico Bruhn

(2008)

Microeconomic study. 34 municipalities. OLS regression with treatment / control group. Years: Apr. 2000-Dec. 2004 (full data set), Apr. 2002- Dec. 2004 (introduction of SARE).

Introduction of a one stop shop (SARE program).

Proxy: Reduction in the number of procedures by 75% from 8 to 2 or fewer.

Increase of 5% in the creation of new firms

Increase of 2.8% in employment Decrease of 3.2% in revenue of incumbent business owners due to increased competition from new entrants Mexico Kaplan et

al. (2007)

Microeconomic study. 93 municipalities. Fixed effects regression with treatment / control group. Years: Jan. 1998-Mar. 2006

Introduction of a one stop shop (SARE program).

Proxy: Reduction in the number of procedures by 75% from 8 to 2 or fewer.

Increase of 4-5% in the creation of new firms Increase of 7-8% in employment United Kingdom Aghion et al. (2006) Microeconomic study. 4,947 firms. OLS regression (included IV). Years: 1987-1993

Increase in foreign firm entry rate by 11.3% Increase of TFP by 1.4-3.1% Cross- country Barseghyan (2008) IV Regressions. 48-95 countries according to the model specification. Year: 2007.

Increase in entry costs by 80% of GNI per capita. /c

Decrease of TFP by 22%

Decrease of GDP per worker by 29%, PPP adjusted

Cross- country

Eifert (2008)

Regressions using panel data with fixed-effect, 39-95 countries according to the model specification. Years: 2003-07.

Decrease of 10 days to start a business.

Increase of GDP growth rate by 0.36% e/ Increase of investment rates by 0.3 percentage points /f Cross- country Fisman and Sarria- Allende (2004)

Regressions using OLS model. 57 countries. Years: 1981- 1990.

Reduction of registration cost. Proxy: moving from 75th world percentile (e.g., Peru - cost is 25.7% of GDP per capita) to 25th percentile (e.g., Singapore - cost is 0.7% of GDP per capita)

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Country Author Methodology Reform (explanatory variable) Impact

Cross- country Becht et al. (2008). Differences-in-differences Regressions. 26 countries. Years: 1997-2006

Introduction of ECJ ruling on freedom of incorporation within EU countries.

Firm incorporation in the UK from other EU countries increases more from countries with high minimum capital and incorporation costs

Cross- country

Klapper et al. (2006)

Regressions using Tobit model (censoring at 1 and 0). 34 countries. Years: 1998-1999.

Reduction of registration cost. Proxy: moving from 75th world percentile (e.g., Italy - cost is 20.02% of GNP per capita) to 25th percentile (e.g., Czech Republic - cost is 8.22% of GNP per capita) Reduction of procedures. Proxy: moving from 75th world percentile (e.g., Spain – 11 procedures) to 25th percentile (e.g., Sweden – 6 procedures)

- Decrease of 0.5 percentage points in entry rates differentials among naturally high- and low-entry industries (high entry industries benefit relatively more) - Decrease of 0.7 percentage points in real growth rate of value added per worker differentials among naturally high- and low-entry industries

(high entry industries benefit relatively more)

- Decrease of 0.8 percentage points in entry rates differentials among naturally high- and low-entry industries (high entry industries benefit relatively more) Notes: /a: The authors did not quantify the exact number of procedures eliminated due to the introduction of CAEs. According to estimates of the local chambers of commerce, the introduction of CAEs reduced the number of days (from 55 to 9), the number of registration procedures and the costs to register. Since these figures are not calculated using the Doing Business methodology, they should not be compared to the findings of the Bruhn and Kaplan studies. /b: Real output is real registered manufacturing output (measured in 1981 prices, thousands of rupees) /c: Note the negative sign of the explanatory variable. /d: ICRG is the International Country Risk Guide, which compiles indices of economic risk, financial risk and political risk. /e: The impact on GDP growth rate is significant in countries that are relatively poor (i.e., countries below the median GDP per capita). /f: The impact on investment rates is significant in countries that are relatively well-governed (i.e., countries with a high score on the IRCG composite country risk index) and in countries that are relatively poor (i.e., countries below the median GDP per capita).

Source: Motta, Marialisa, Ana Maria Oviedo and Massimiliano Santini, Impact of Business Entry Reforms: Evidence from the Literature, 22 January 2010.

Nexus Associates, Inc.

Case studies prepared by Nexus Associates of projects in three countries show mixed results.