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The Impact of Regulations upon the Startup of New Businesses

Author

Listed:
  • Adi Eleonor TRIFU

    (Bucharest University of Economic Study, Romania)

  • Adriana GÎRNEA?Ã

    (Bucharest University of Economic Study, Romania)

  • Ana Mãdãlina POTCOVARU

    (Bucharest University of Economic Study, Romania)

Abstract

The objective of this paper is to show the impact of regulation upon the start up of new businesses in the European Union. The study uses some of the components of the Ease doing business index elaborated by the World Bank. The methods used are the correlation analysis and ordinary least squares for an unbalanced data panel with 26 cross-sections (European Union member states) and time periods from 2005 to 2012. The regression equation is composed of one dependent variable, represented by the New Business Registration Density per 1000 people and 18 independent variables gathered from components of Ease of Doing Index. The results of this research show that the influence of regulatory factors is very strong. This paper is addressed to entrepreneurs, managers of public institution, specialists and all interested readers.

Suggested Citation

  • Adi Eleonor TRIFU & Adriana GÎRNEA?Ã & Ana Mãdãlina POTCOVARU, 2015. "The Impact of Regulations upon the Startup of New Businesses," Economia. Seria Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(1), pages 49-59, June.
    • Handle: RePEc:rom:econmn:v:18:y:2015:i:1:p:49-59
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    References listed on IDEAS

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    1. Simeon Djankov & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2002. "The Regulation of Entry," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(1), pages 1-37.
    2. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    3. André Stel & David Storey & A. Thurik, 2007. "The Effect of Business Regulations on Nascent and Young Business Entrepreneurship," Small Business Economics, Springer, vol. 28(2), pages 171-186, March.
    4. Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(1), pages 83-116.
    5. John W. Dawson, 2006. "Regulation, Investment, and Growth across Countries," Cato Journal, Cato Journal, Cato Institute, vol. 26(3), pages 489-509, Fall.
    6. Ruta Aidis & Saul Estrin & Tomasz Mickiewicz, 2012. "Size matters: entrepreneurial entry and government," Small Business Economics, Springer, vol. 39(1), pages 119-139, July.
    7. Klapper, Leora & Love, Inessa, 2010. "The impact of business environment reforms on new firm registration," Policy Research Working Paper Series 5493, The World Bank.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Hussein Ali Mroueh, 2024. "The Role of Financial Audit in the Corporate Governance Process: An In-depth Analysis," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 36-42.
    2. Mroueh Hussein Ali, 2024. "The Intersection Of Accounting And Informatics In Contemporary Company Management," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 13-23, April.
    3. Mahmoud Tarhini, 2022. "Consumption and Consumer Behaviour of Organic AGRI-FOOD Products," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 23(1), pages 136-149, March.

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    More about this item

    Keywords

    new business registration; entrepreneurs; regulations; doing business.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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