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Entry Regulation, Investment and Economic Growth

  • Journal of Regulation Studies
  • 2008, 17(2), pp.27-46
  • Publisher : 한국규제학회
  • Research Area : Social Science > Public Administration

Jong-Ho Kim 1

1산업연구원

Accredited

ABSTRACT

This study examines relationship between entry regulation, investment and economic growth. Using objective measures of entry regulation such as startup procedure, cost, duration, and minimum capital requirement, we find that only startup cost has negative impact on long-run growth. Moreover, the effect of startup cost on invest which, in turn, influences long-run growth turns out to be significant. This implies that regulatory reform on market entry should focus more on reducing startup cost and the effect of regulatory reform through the investment channel should be considered in analyzing the effect of regulatory reform.

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