Licensing procedures in developing countries: Should they be part of the set-up process?

Qing Zhang, Anthony Ogus

Research output: Contribution to journalArticlepeer-review

Abstract

Surveys have shown that, while many developing countries tend to integrate licensing requirements in the set-up process ("set-up licensing"), the more developed countries generally use licensing procedures independent of the set-up process ("independent licensing"). Set-up licensing may impose more compliance costs on entrepreneurs, more administrative costs on officials, and more welfare losses on consumers than independent licensing. In this article we explore the distinction to see whether the widespread preference for set-up licensing in developing countries can be justified on public interest grounds, or at least explained on private interest grounds.
Original languageEnglish
Pages (from-to)1091-1108
Number of pages17
JournalInternational Journal of Public Administration
Volume29
Issue number12
Publication statusPublished - 2006

Keywords

  • Developing countries
  • Independent licensing
  • Licensing procedures
  • Set-up licensing
  • Set-up process

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