Enterprise creation & anti-commons in developing economies: evidence from World Bank doing business data

Driouchi, Ahmed and Malki, Karim (2011): Enterprise creation & anti-commons in developing economies: evidence from World Bank doing business data.

Abstract

Abstract: This paper looks at the tragedy of anti-commons and its implications on enterprise creation in developing economies. The most important features of the anti-commons are captured under a simplified theoretical economic model. The empirical part uses the data from “Doing Business” of the World Bank, to test for the high costs implied by scattered and fragmented decisions related to enterprise creation in developing economies. The attained results show the prevalence of anti-commons in relation to the development of new enterprises in developing economies relative to more developed countries. This points out how anti-commons can limit development and market economies through reducing business and enterprise creation and expansion. Awareness and development of appropriate remedies to anti-commons are among the means to ensure higher economic and social achievements.

• Item Type: MPRA Paper
• Language: English
• Keywords: Anti-commons, Enterprise Creation, Licensing and Costs
• Subjects: D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection

References

Aoki, K. 1998. Neo-colonialism, Anticommons Property, and Biopiracy in the (Not-So-Brave) New World Order of International Intellectual Property Protection. Indiana Journal of Global Legal Studies 11.

Bergstrom, T. 2010. The Uncommon Insight of Elinor Ostrom. Scandinavian Journal of Economics http://works.bepress.com/ted_bergstrom/107.

Buchanan, J. and Y. Yoon. 2000. Symmetric Tragedies; Commons and Anticommons. Journal of Law and Economics 43 (1.

Canavese, A. 2004. Commons, anti-commons, corruption and behavior. Econometric Society 2004 Latin American Meetings 115.

Cantrell, R., G. Hettel, G. Barry and R. Hamilton. 2004. Impact of Intellectual Property on Nonprofit Research Institutions and the Developing Countries They Serve. Minnesota Journal of Law, Science & Technology 6 (1):253-276

Coelho, M., J. Filipe and M. Ferreira. 2009. Tragedies on Natural Resources a Commons and Anticommons Approach. Working Papers 2009/21, Department of Economics at the School of Economics and Management (ISEG) , Technical University of Lisbon.

Depoorter, B. and S. Vanneste. 2004. Putting Humpty Dumpty Back Together: Experimental Evidence of Anticommons Tragedies. Research Paper No. 04-53, George Mason Law & Economics.

Dethier, J., Hirn, M. and Straub, S. 2008. Explaining Entreprise Performance in Developing Countries with Business Climate Survey Data. Policy Research Working Paper 4792, World Bank, Washington DC http://econ.worldbank.org

Djankov, S., La Porta, R., Lopez-De-Silanes, F. and Shleifer, A. 2002. The Regulation of Entry. The Quarterly Journal of Economics 115 (1). Available at http://www.doingbusiness.org/~/media/FPDKM/Doing%20Business/Documents/Methodology/Supporting-Papers/DB-Methodology-Regulation-of-Entry.pdf

Gao, J. and Wang, J. 2008. The Tragedy of the Anti-commons in Government Public Management and the Establishment of the System of “Super Ministry” in China. International Conference on Management Science and Engineering, 2008. 15th Annual Conference Proceedings.

Gollock, A. 2008. Les implications de l’Accord de l’OMC sur les Aspects de Droits de Propriété Intellectuelle qui touchent au Commerce (ADPIC) sur l’accès aux médicaments en Afrique subsaharienne. Thesis, Université Grenoble II, Laboratoire d’Economie de la Production et de l’Intégration Internationale.

Graff, G., S. Cullen, K. Bradford, D. Zilberman and E. Bennett. 2003. The Public and Private Structure of Intellectual Property Ownership in Agricultural Biotechnology. Nature Biotechnology 21:989-995.

Hardin, G. 1968. The Tragedy of the Commons. Science 162.

Heller, M. 1998. The Tragedy of the Anticommons: Property in the Transition from Marx to Markets. Harvard Law Review 11:621-688.

Heller, M. and R. Eisenberg. 1998. Can Patents Deter Innovation? The Anticommons in Biomedical Research. Science 280.

Kapczynski, A., E. Croneand and M. Merson. 2003. Global Health and University Patents. Science 301.

Kelly, D. and F.Michelman. 1980. Are Property and Contract Efficient? Hofstra Law Review 8:711. Nash, M. 2001. Grains of Hope. TIME. www.time.com/time/asia/biz/magazine/0,9754,98034,00.html.

O'Brien, Robert M. 2007. A Caution Regarding Rules of Thumb for Variance Inflation Factors Quality and Quantity 41(5)673-690.

Ostrom, E. 1990. Governing the Commons. Cambridge University Press: New York.

Ostrom, E. and E.Schlager. 1992. Property rights regimes and natural resources. Land Economics 68:249-262.

Parisi, F., B. Depoorter and N. Schulz. 2003. Simultaneous and Sequential Anticommons. Working Papers 279, John M. Olin Center for Studies in Law, Economics, and Public Policy.

Parisi, F., B. Depoorter and N. Schulz. 2005. Duality in Property: Commons and Anticommons. International Review of Law and Economics 25 (4):10

Qianwei, Y. and Guangnan Z. 2007. Enterprise Licensing, Bribery and the Tragedy of the Anti-Commons: The Case of China. Asian Journal of Public Affairs Summer 2007 (1):1

Quah, J. 1982. Bureaucratic Corruption in the ASEAN Countries: A Comparative Analysis of Their Anti-Corruption. Journal of Southeast Asian Studies 13 (1) http://www.jstor.org/stable/20070476

Scharff, R. 2006. A Common Tragedy: Condemnation and the Anticommons. bepress Legal Series. Working Paper 1312. http://law.bepress.com/expresso/eps/1312

Silva, M.J., Tringo, V and Antunes, R. 2011. Institutional Approach and Enterprise Creation: Support Systems in the Case of Small City in Rural and Peripheral Areas of Portugal. Economic Interferance 13 (29)

The World Bank Group. Doing Business Home – The World Bank Group. http://www.doingbusiness.org/ (accessed November 25th, 2010)

United Nations Development Programme. 2010. Human Development Report 2010. http://hdr.undp.org/en/media/HDR_2010_EN_Complete.pdf (accessed March 15th, 2011)

Velho,L. 2004. Agricultural Biotechnology Research Partnerships in Sub-Saharan Africa: Achievements, Challenges and Policy Issues. Technology Policy Briefs 4(1).