UID:
edocfu_9958123594702883
Format:
1 online resource (45 pages)
ISBN:
1-283-94900-8
,
0-8213-9802-4
Series Statement:
Independent Evaluation Group Studies
Content:
This evaluation is about the nature and magnitude of the cost savings and other benefits of business license simplification in one of the central districts of Lima, Peru. IEG asked whether the project's license simplification reform reduced costs and operating procedures and whether it increased business registration. The project was implemented from 2005 to 2007. Two evaluations done in 2007 and 2008-11 examined, respectively, whether the project led to reductions in time and procedures and whether it led to improved business outcomes. This evaluation reviewed both of those, collected additional data, and drew lessons for future operations. The evidence points to significant reductions in time, monetary costs, and business procedures for businesses that registered to obtain licenses. However, the greater formality of the business environment did not improve the enterprises' access to financing, facilitate investment, or remove invisible barriers to business growth. These results have policy implications for formal business environments. Although there were not large positive effects for enterprise outcomes, enterprise owners and society overall gained through owners spending less time away from their firms to certify and register their firms. Such projects are sometimes promoted as a way to foster dynamic businesses, but the evidence in this report suggests that the more mundane time and cost savings are a significant part of the benefits. These results offer the promise of sharpening the understanding of the circumstances under which reforms may be viewed as a growth engine for a society; they also enable IFC to provide a more focused understanding of reasonable expectations for such projects. Based on these findings, IEG's evaluation offers several recommendations about follow-up evaluations, investment in data collection, and developing a base of evidence to aid in setting expectations for projects.
Note:
At head of title: IG World Bank, IFC, MIGA.
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Cover; CONTENTS; ACKNOWLEDGMENTS; OVERVIEW; ABBREVIATIONS; 1. INTRODUCTION; IFC's Support to Licensing Reform in Lima; FIGURES; Figure 1.1 Central District in Lima Where Reforms Were Implemented; Broader Issues; Previous Evaluations on Business Licensing; Note; References; 2. IMPACT OF REFORM ON COSTS AND REGISTRATIONS; TABLES; Table 2.1 Summary of Reduction in Costs and Procedures to Obtain a License; References; 3. POTENTIAL BENEFITS FROM LICENSE SIMPLIFICATION-EVIDENCE FROM ENTERPRISE OUTCOMES; Data and Regression Methodology; Evidence from the First Four Rounds of the Enterprise Survey
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Table 3.1 Before-and-After and Double-Difference Estimates of ImpactTable 3.2 Impact on Revenues (in constant price Nuevo soles); Table 3.3 Impact on Profits per Worker; Table 3.4 Impact on Employment (including owner); Evidence from the Fifth Round of the Enterprise Survey; Table 3.5 Impact on Revenues (constant Nuevo soles); Table 3.6 Impact on Profits per Worker (constant Nuevo soles); Benefits from License Simplification-Evidence from Enterprise Behavior; Table 3.7 Impact on Employment (including owner)
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Figure 3.1 Eligible Enterprise Owners Judging the License Worth Getting If the Full License Fee Were PaidNotes; Table 3.8 Costs and Benefits of Getting Licenses-Number of Times Each Item Mentioned by Survey Respondents in First Round of Survey; References; 4. COST-BENEFIT ASSESSMENT OF THE LICENSE REFORM; Table 4.1 Baseline Values and Assumptions Used in Simulations; Table 4.2 Simulation Results: Number of Formal and Informal Firms; Table 4.3 Simulation Results: Number of Firms Experiencing Licensing Costs; Table 4.4 Reduction in Waiting Time and Fees Used in the Cost-Benefit Analysis
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Table 4.5 Sensitivity AnalysisNotes; References; 5. CONCLUSIONS, POLICY IMPLICATIONS, AND IMPLICATIONS FOR IFC; Conclusions; Policy Implications; Implications for IFC; Notes; References; APPENDIX: DATA TABLES
,
English
Additional Edition:
ISBN 0-8213-9801-6
Language:
English
DOI:
10.1596/978-0-8213-9801-2
