The impact of doing business regulations on investments in ICT

Abstract

Using industry-level data from 14 OECD countries and doing business indicators of the World Bank, we analyze how country-level regulations of business activities affect investments in information and communication technologies (ICT). We find that investments in ICT decrease with the costs of starting and operating a business and registering property. Investments increase with the strength of legal rights. We also find that investments in software increase with the ability of shareholders to sue managers for misconduct, and investments in communication technologies decline with the extent of director liability for self-dealing.