Today’s world is a far more interconnected environment than it has ever been, which has facilitated the trade of goods and services across countries and continents on a scale never seen before. The process of globalization has intensified the competition between firms of different countries, as companies compete in a multitude of markets. In this context, analysing the obstacles firms face through their life cycle (such as starting the business, hiring, paying taxes or exporting) enables researchers and policy makers to better understand the differences in competitiveness between countries, as well as to pave the way for better policies for the business environment. Moreover, improvements in the environment where firms operate, in particular the reduction of framework costs, can foster economic growth and increase potential GDP, as more firms enter the market and the country becomes more attractive for direct foreign investment.
