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- Title
BUREAUCRATIC STRUCTURE, REGULATORY QUALITY AND ENTREPRENEURSHIP IN A COMPARATIVE PERSPECTIVE.
- Authors
NISTOTSKAYA, MARINA; CINGOLANI, LUCIANA V.
- Abstract
This paper examines the effect of meritocratic recruitment and tenure protection in public bureaucracies on regulatory quality and business entry rates in a global sample. Utilizing a cross-country measure on the extent of meritocratic entry to bureaucracy and a time-series indicator of tenure protection, it subjects theoretical claims that these features improve the epistemic qualities of bureaucracies and also serve as a credible commitment device to empirical test. We find that, conditional on a number of economic, political and legal factors, countries where bureaucracies are more insulated from day-to-day oversight by individual political principals through the institutional features under consideration tend to have both better regulation, specifically business regulation, and higher rates of business entry. Our findings suggest that bureaucratic structure has an indirect effect on entrepreneurship rates through better regulatory quality, but also exert a direct independent effect.
- Subjects
BUREAUCRACY; RATIONAL-legal authority; ENTREPRENEURSHIP; MERITOCRACY; ORGANIZATIONAL structure
- Publication
QOG Working Paper Series, 2014, Issue 8, p1
- ISSN
1653-8919
- Publication type
Article