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Overview: This research paper from Massachusetts Institute of Technology describes that using the data from World Business Environment Survey (WBES) on over 10,000 firms across eighty one countries; this paper also finds significant regulatory advantages - as perceived by the firms themselves - enjoyed by foreign firms over domestic firms. The findings on regulatory advantages of foreign firms hold with a variety of alternative measures of regulations and with or without firm- and country-level attributes and industry and country controls. There is also evidence that foreign firms’ regulatory advantages are especially substantial vis-a-vis the politically weak domestic firms.
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