English (United Kingdom)

https://curated-unify.zendy.io/wp-json/zendy-region/v1/featured_content/oa?rat=en

https://curated-unify.zendy.io/wp-json/zendy-region/v1/highlighted_journal/

Global: Zendy Plus annual

Presents the access of premium content as premium feature

Premium Content

Presents the keyphrase highlighting as premium feature

Keyphrase Highlighting

Presents the summarisation as premium feature

Summarisation

Insights

Presents the pdf analysis as premium feature

PDF Analysis

Presents the zaia usage as premium feature

ZAIA

Global: Zendy Tools annual

Global: Zendy Free Plan

Global: Zendy Tools monthly

Global: Zendy Plus monthly

Reducing entry costs like bureaucratic procedures might be useful tool for stimulating new firm creation in a country. We exploit an unexpected reform that targets the physical (face-to-face) service channel, offering a decline in these types of costs in the firm creation process in Ecuador. To do this, we rely on a novel and underexplored administrative dataset and apply a difference-in-differences approach which compares physical (in-person) with electronic firm creation schemes before and after the implementation of the policy. We find that the reform increases the number of new firms by approximately 12.05% and the entry rate by approximately 108% in the short term. We also find that the impact varies across provinces and economic sectors. In addition, we find a decrease in the average number of days needed to create a new firm and an increase in the probability of creating a new firm with less initial minimum capital. The main conclusion is that the reform effectively contributes to increasing new firm creation in Ecuador. This matters from a policy perspective in a country with a high share of unregistered business.

Red Tape Reduction, More New Firms? Saving Time and Money: Evidence from an Ecuadorian Reform