LATEST PUBLICATIONS
AIM RSN PCC WP 2017-009
Firm Creation and the Ease and Cost of Doing Business
AIM RSN PCC WP 2017-008
The Dynamics of SME - Large Business Linkages: Findings from Six Cases
AIM RSN PCC WP 2017-007
An Empirical Analysis of SME and Large Business Linkages: Evidence from the Philippines
AIM RSN PCC WP 2017-006
Leveraging Competition Policy for SME Development and Shared Prosperity
Featured Publication

Firm Creation and the Ease and Cost of Doing Business

Canare, Tristan A. Francisco, Jamil Paolo S. Morales, Jose Fernando


Existing literature has studied the effects of business environment on business creation, private sector growth, and economic development. Using data from Philippine cities and municipalities from 2011 to 2015, this paper tested for the relationship between business creation and the ease and cost of doing business. The results provide evidence that the overall ease and cost of doing business is indeed associated with business creation, but the relationship becomes more apparent with disaggregation. In particular, lower cost of doing business is found to be a much stronger predictor of business creation than ease of doing business. The specific indicators that drive this relationship are minimum wage, price of electricity, price of water, and price of land from the 'cost' dimension, and number of days it takes to process a new business permit from the 'ease' dimension. This has implications on policy-making, especially in designing programs that target firm creation. The relationship between business creation and the ease and cost of doing business also changes across city and municipal income levels. Among the poorest municipalities, ease and cost of doing business loses its importance as a determinant of business creation; governance indicators become more important.


AIM RSN PCC WP 2017-008  The Dynamics of SME - Large Business Linkages: Findings from Six Cases
AIM RSN PCC WP 2017-007  An Empirical Analysis of SME and Large Business Linkages: Evidence from the Philippines
AIM RSN PCC WP 2017-006  Leveraging Competition Policy for SME Development and Shared Prosperity
AIM RSN PCC 2017-005  Technical-Vocational Education and Training for Business Process Management: Challenges and Potential
AIM RSN PCC WP 2017-004  Shaping the Public Perception Toward Local Authorities: The Role of Perceived Social, Economic, and Political Insecurities
AIM RSN PCC 2017-003  Assessment of the Meetings, Incentives, Conventions and Exhibitions (MICE) Industry in the Philippines
AIM RSN PCC 2017-002  Fear of Crime and Saving Behavior
AIM RSN PCC 2017-001  Reassessing Fear of Crime: The Role of Broad Insecurities
AIM RSN PCC 2016-003  Increasing Competition in the Telecommunications Sector of the Philippines
AIM RSN PCC WP 2016-002  IT-BPO in the Philippines: A Driver of Shared Prosperity?
PN 2018-03  Ensuring the Success of Agribusiness Ventures in the Philippines
DRN 2018 Vol. XXXVI No. 1  PH laws on women lack teeth