Entry barriers and growth

Büttner, Bettina

doi:10.1016/j.econlet.2006.04.009

Cited by 17 publications

(12 citation statements)

References 7 publications

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“…This effect appears to prevail primarily with respect to opportunity‐ and innovation‐based entrepreneurship. Hence, the direct and indirect effects that are associated with regulatory burdens appear to decelerate the forces of creative destruction and hamper economic development (Büttner , Ciccone and Papaionnou )…”

Section: Introductionmentioning

confidence: 99%

Taxes, tax administrative burdens and new firm formation

Braunerhjelm

Eklund

2014

Kyklos

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Summary This paper examines the tax administrative burden and its effect on new firm formation. It is well recognized that entrepreneurship and new firm formation are critical factors in determining economic growth and development. New firm entry into the marketplace enhances welfare in two distinct ways: 1) by promoting innovation, productivity and economic growth and 2) by increasing competition, which lowers prices and expands output. It is also well documented that barriers to entry reduce the likelihood that new firms will enter various sectors. We argue that the burden imposed by tax codes and tax compliance constitutes a barrier to entry that has been neglected in the previous literature. We use data from the World Bank to measure the administrative burden that the complexity of tax policy imposes on new firms. Additionally, we use a measure of new firm formation – entry density. Our data cover 118 countries over a period of six years. We find that the entry rate is significantly reduced by the tax administrative burden and that this effect is unrelated to general taxes on corporate profits and is robust to the inclusion of several important control variables.

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Section: Introductionmentioning

confidence: 99%

Taxes, tax administrative burdens and new firm formation

Braunerhjelm

Eklund

2014

Kyklos

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“…The journey of innovation ends with the successful introduction of a service, technology, or product to the market by creating new value to its users [66]. The most critical part of the commercialization stage is to have access to both local and international markets without any hindrance or unfair treatment (heavy levies, taxes, or regulatory hurdles vis-à-vis to the product's competitors) [82]. The second important aspect of the commercialization stage is to have a sufficiently big local market where the product receives the initial demand and feedback for its performance before going to international markets [83].…”

Section: Determinants and Characteristics Of Innovationmentioning

confidence: 99%

“…A skilled pool of entrepreneurs is thus critical for innovation in an industry, market, or country [82]. The building up of such a pool (skilled entrepreneurs), incentivizing them, and supporting them legally, financially and logistically are critical steps in turning ideas into businesses, services, or new approaches for value creation [90].…”

Section: Determinants and Characteristics Of Innovationmentioning

confidence: 99%

The Incentives and Efforts for Innovation and Entrepreneurship in a Resource-Based Economy: A Survey on Perspective of Qatari Residents

Tok

2020

Sustainability

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This paper studies the local perspective on innovation and entrepreneurship in the resource-based state of Qatar. The effective utilization of abundant natural resources (oil and gas) have propelled the country’s rapid economic development over the last four decades. However, accelerating decarbonization efforts of the global energy system due to climate change put the future value of these hydrocarbon resources into doubt and hence the country’s revenue streams from international trade. Rapidly growing the local population adds further pressure to the social welfare system amid dwindling oil and gas revenues for the state. The argument for economic diversification and theoretical foundations of innovation and entrepreneurship in a resource-rich state are discussed. A survey to measure the attitude of the residents in Qatar towards innovation and state-led initiatives is prepared and conducted with people living in the country. The analysis of the survey shows that Qatari residents are relatively risk-averse and state-dependent in their pursuit of new entrepreneurial opportunities. We identify three possible reasons for such an outcome; they are, (1) the country’s unique economic structure (natural resource-based), (2) demographic structure (expatriates vs. citizens), and (3) lack of previous experience in innovation and entrepreneurship (path dependency) in a relatively young country. The country’s spectacular success in the last three decades has become its Achilles-heel in decoupling the current economy away from hydrocarbon dependence.

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“…Likewise, market regulations can create both positive and negative economic outcomes. On the positive, deregulation of market entry, which is mainly attributable to international integration, promotes private investment by encouraging the creation of new enterprise and improving competition in the market (Buettner, 2006). An efficient regulation of business, labor, and credit also helps reduce rent-seeking behavior and corruption as well as reduce the effect of resource curse (Iimi, 2006).…”

Section: Literature Reviewmentioning

confidence: 99%

“…An analysis of market entry regulations in 85 economies by Djankov et al (2002) showed that the stricter they are, the higher the level of corruption and the greater the size of unofficial economy. As a result, growth-enhancing reforms are those reducing entry costs and liberalizing market entry (Buettner, 2006) .…”

Section: Literature Reviewmentioning

confidence: 99%