This book documents the regulatory obstacles faced by firms, particularly in developing countries, and assesses their implications for firm renewal and macroeconomic performance. It provides evidence that streamlining the regulatory framework would have a significant social pay-off, particularly in developing countries also burdened by weak governance. In tracing links between microeconomic policies and distortions, on the one hand, and aggregate performance in terms of productivity, growth and volatility, on the other, this book seeks to derive relevant lessons for development policy.