THE REGULATION OF ENTRY*

We present new data on the regulation of entry of start-up rms in 85 countries. The data cover the number of procedures, ofcial time, and ofcial cost that a start-up must bear before it can operate legally. The ofcial costs of entry are extremely high in most countries. Countries with heavier regulation of entry have higher corruption and larger unofcial economies, but not better quality of public or private goods. Countries with more democratic and limited governments have lighter regulation of entry. The evidence is inconsistent with public interest theories of regulation, but supports the public choice view that entry regulation benets politicians and bureaucrats. I