Business regulations and poverty
2018
Djankov, Simeon | Georgieva, Dorina | Ramalho, Rita
Using panel data for 189 economies from 2005 to 2013, we show that business-friendly regulations are correlated with the poverty headcount at the country level. This association is significant using the World Bank’s Doing Business indicators on getting credit and contract enforcement. We suggest that the conduit for poverty reduction is business creation, both as a source of new jobs and as a manifestation of thriving entrepreneurship.
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