California's regulatory constraints for industry and commerce are correlated with fewer manufacturing starts

A: All constraints   B: Environment   C: Industry/Commerce  

Source: Author calculations from YourEconomy Time Series and QuantGov.
NOTES: Scatterplot of regulatory constraints by state related to manufacturing (count of restrictions regressed on state dummies, with 3-digit NAICS dummies) and 2023 manufacturing business establishment starts by state. In Panel A, regressing the establishment start rate on the regulation measure (restrictions, measured in 1,000s) yields an estimate (standard error) of −0.0017 (0.0017). In Panel B, the estimate is -0.0008 (0.0021). In Panel C, the estimate is −0.0061 (0.0058). None of these slopes are statistically significantly different from zero at the 10 percent level.