Cost of Opening a Business and Real GDP Growth
The Graph of the Week comes from the article by Edward Lazear "Encouraging Growth and Stability" in the October 2008 issue of Business Economics.From the article:
One frequently used measure of the free flow of capital is the cost of opening a new business. Figure 5 illustrates that countries in which it is relatively cheap to start new businesses also had the highest levels of growth during the past decade.
NABE members can read the article, or others from the October issue, here.