Business Dynamics and Red Tape Barriers

Author (Corporate)
Series Title
Series Details No.532, September 2014
Publication Date September 2014
ISBN 978-92-79-35181-5
ISSN 1725-3187
EC KC-AI-14-532-EN-N
Content Type ,

Abstract:
Entry is a key element of the transmission mechanism through which product market reforms ultimately affect productivity and growth. Therefore, reforms aiming at facilitating firms' entry can be considered as giving an extra bonus in the sense that they facilitate the materialization of the full effect of other competition-enhancing reforms.

By the light of these considerations, this study aims at estimating the impact of changes in the administrative cost of starting a business and/or exporting on entry dynamics in 17 European member countries (AT, BE, CZ, DE, DK, EE, ES, FI, FR, HU, IT, NL, PL, PT, SE, SK and UK) during the period 2004-2011. Results confirm the theoretical expectation: the higher the level of red tape barriers, the lower entry dynamics.

Source Link Link to Main Source http://dx.publications.europa.eu/10.2765/71361
Related Links
European Commission: DG Economic and Financial Affairs:European Economy: Economic Papers No.532, September 2014:Business Dynamics and Red Tape Barriers http://ec.europa.eu/economy_finance/publications/economic_paper/2014/ecp532_en.htm

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