The role of regulatory barriers in inhibiting entrepreneurship, investment and employment creation is an old topic in economics. This study by Benn Eifert utilizes the panel dimension of the Doing Business data, studying the linkages between discrete changes in entry and exit regulations, labor regulations and the efficiency of contract enforcement on the one hand and subsequent changes in aggregate investment and unemployment rates on the other. The findings suggest that de jure regulatory reform has not elicited a significant economic response in the short run, though insufficient data is available to test medium-run impacts.
At the seminar on October 26, Benn Eifert, Graduate Student, Department of Economics, University of California, Berkeley presented his findings and Vijaya Ramachandran, Visiting Fellow, Center for Global Development, served as moderator for the discussion.
Download Benn Eifert's presentation (pdf, 1M)