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Näringslivsregleringar och ekonomisk tillväxt

Dettwiler, Pascal LU and Fors, Sofia (2018) NEKH02 20181
Department of Economics
Abstract
Ease of Doing Business Index is published every year by the World Bank, and is used to describe how simple it is to start-up and run a business in different parts of the world. The index is constructed by eleven indicators, which are based upon around forty underlying variables.
This essay examines the correlation between the underlying variables for the indicators Starting a business and Paying taxes with the GDP per capita growth rate. A regression using panel data is used to evaluate if such correlation exists. The sample includes 129 countries, during the time period 2005 to 2016.

The results show that Cost of starting a business has a negative impact on the GDP per capita growth rate in low income countries, whilst a positive... (More)
Ease of Doing Business Index is published every year by the World Bank, and is used to describe how simple it is to start-up and run a business in different parts of the world. The index is constructed by eleven indicators, which are based upon around forty underlying variables.
This essay examines the correlation between the underlying variables for the indicators Starting a business and Paying taxes with the GDP per capita growth rate. A regression using panel data is used to evaluate if such correlation exists. The sample includes 129 countries, during the time period 2005 to 2016.

The results show that Cost of starting a business has a negative impact on the GDP per capita growth rate in low income countries, whilst a positive relationship is found in high income countries. Furthermore, the Procedures required starting a business and the Time to prepare and pay taxes show a positive correlation with the GDP per capita growth rate. Time to start at business shows no correlation with economic growth. The Number of taxes that a business needs to pay has a negative impact on the growth rate in low-income countries, whilst in highincome countries no correlation is found. The Minimum paid-in capital required to start a limited liability company shows a negative correlation with GDP per capita growth rate across all countries. When examining the Total tax rate’s relationship with the economic growth rate, a nonlinear relationship is found. This implies that when the initial tax rates are low, it might be beneficiary to raise the total tax rate, while if the initial tax rates are high, it might be beneficiary to lower the total tax rates in order to maximize the economic growth rate. (Less)
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author
Dettwiler, Pascal LU and Fors, Sofia
supervisor
organization
course
NEKH02 20181
year
type
M2 - Bachelor Degree
subject
keywords
economic growth, Ease of Doing Business Index, panel data, starting a business, paying taxes
language
Swedish
id
8946023
date added to LUP
2018-07-05 11:24:37
date last changed
2018-07-05 11:24:37
@misc{8946023,
  abstract     = {Ease of Doing Business Index is published every year by the World Bank, and is used to describe how simple it is to start-up and run a business in different parts of the world. The index is constructed by eleven indicators, which are based upon around forty underlying variables. 
This essay examines the correlation between the underlying variables for the indicators Starting a business and Paying taxes with the GDP per capita growth rate. A regression using panel data is used to evaluate if such correlation exists. The sample includes 129 countries, during the time period 2005 to 2016. 
 
The results show that Cost of starting a business has a negative impact on the GDP per capita growth rate in low income countries, whilst a positive relationship is found in high income countries. Furthermore, the Procedures required starting a business and the Time to prepare and pay taxes show a positive correlation with the GDP per capita growth rate. Time to start at business shows no correlation with economic growth. The Number of taxes that a business needs to pay has a negative impact on the growth rate in low-income countries, whilst in highincome countries no correlation is found. The Minimum paid-in capital required to start a limited liability company shows a negative correlation with GDP per capita growth rate across all countries. When examining the Total tax rate’s relationship with the economic growth rate, a nonlinear relationship is found. This implies that when the initial tax rates are low, it might be beneficiary to raise the total tax rate, while if the initial tax rates are high, it might be beneficiary to lower the total tax rates in order to maximize the economic growth rate.},
  author       = {Dettwiler, Pascal and Fors, Sofia},
  keyword      = {economic growth,Ease of Doing Business Index,panel data,starting a business,paying taxes},
  language     = {swe},
  note         = {Student Paper},
  title        = {Näringslivsregleringar och ekonomisk tillväxt},
  year         = {2018},
}