Previous literature, such as The World Bank and Doing Business have found that reducing the time and cost of firm registration and reducing business regulations in general are correlated with firm creation. It is also argued that simplification of regulations can make it easier and faster to start a new business, and that new businesses have a positive effect on growth and also a shifting of informal firms to the formal economy. Motivated by this we are interested in analyzing the following main question:
What determines the number of days to start a new business?
Data shows that there exist large differences across countries in the number of days it takes to start a new business, so it is relevant to study what characterize these countries. Possible explaining factors could be government regulations, available technology such as the Internet, economic freedom, political freedom, level of trust in the society etc.
Data
The World Bank
The data will be called from an API and be merged with additional data containing potential determining factors (data on “dealing with construction permits”, “getting electricity”, “registering property”, “getting credit”, “protecting minority investors”, “paying taxes”, “trading across borders”, “enforcing contracts”, “resolving insolvency”).
Data for the number of days it takes to register a business exists as a time series. Using the time series, another question of interest could be, if the number of days is negatively correlated with number of business created.
Method
Descriptive statistics
Development over time
Ranking of the countries
Mapping
Linear regression model
Response variable: Number of days to start a new business
Regressors: All available data, that could determine the number of days to start a new business
Idea
Previous literature, such as The World Bank and Doing Business have found that reducing the time and cost of firm registration and reducing business regulations in general are correlated with firm creation. It is also argued that simplification of regulations can make it easier and faster to start a new business, and that new businesses have a positive effect on growth and also a shifting of informal firms to the formal economy. Motivated by this we are interested in analyzing the following main question: What determines the number of days to start a new business? Data shows that there exist large differences across countries in the number of days it takes to start a new business, so it is relevant to study what characterize these countries. Possible explaining factors could be government regulations, available technology such as the Internet, economic freedom, political freedom, level of trust in the society etc.
Data
The World Bank The data will be called from an API and be merged with additional data containing potential determining factors (data on “dealing with construction permits”, “getting electricity”, “registering property”, “getting credit”, “protecting minority investors”, “paying taxes”, “trading across borders”, “enforcing contracts”, “resolving insolvency”). Data for the number of days it takes to register a business exists as a time series. Using the time series, another question of interest could be, if the number of days is negatively correlated with number of business created.
Method