Impact of Business Regulations on Firms Growth in Pakistan
Author: Adil Ali Khan

The thesis aims to empirically examine the impact of business regulations on firms‟ growth in Pakistan. The empirical analysis is based on cross sectional data of 774 firms from World Bank Enterprise Survey (WBES) 2013. The estimations are carried out by using the Ordinary Least Square (OLS). The empirical analysis is conducted at aggregate level as well as at different sizes of the firms including small, medium and large firms. The empirical analysis shows that there is a negative and significant relation between business regulation and firm growth, implying that stringent regulation adversely impacted the firm growth. For business expansion business friendly regulations are required. It further shows that business regulation more decreases the growth of large firms than small and medium size firms, by implying that large firms have been affected more due to the regulatory burden. In order to check the robustness of results financial characteristics, enforcement quality, infrastructure and innovations have been used as control variables. The results remain the same in the presence of these control variables. The degree of impact of different regulations observed different throughout the regions, therefore local conditions and circumstances should receive consideration while framing business regulation and reforms. To achieve sustainable development, high goal in the growth of firms and decrease in the regulatory burden on firms, So Institutions should be made effective. Supervisor:- Dr. Nasir Iqbal

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Supervisor: Nasir Iqbal

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