Market Liberalization, Regulatory Uncertainty, and Firm Investment

Baumann Florian and Tim Friehe
Additional contact information
Baumann Florian: Eberhard Karls University Tübingen,Tübingen, Germany

German Economic Review, 2012, vol. 13, issue 3, 352-361

Abstract: This paper analyzes the effects of regulatory uncertainty regarding labor costs on investment in a liberalized market. We distinguish between the external investment margin (market entry) and the internal investment margin (technology), and establish that regulatory uncertainty affects these margins differently, encouraging market entry, but discouraging technological investment. As a consequence, the impact of regulatory uncertainty on competition in liberalized markets is a combination of these two countervailing forces.

Keywords: Regulatory uncertainty; investment; market entry; minimum wage (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1111/j.1468-0475.2012.00564.x (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: Market Liberalization, Regulatory Uncertainty, and Firm Investment (2012)
Working Paper: Market Liberalization, Regulatory Uncertainty, and Firm Investment (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:germec:v:13:y:2012:i:3:p:352-361

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ger/html

DOI: 10.1111/j.1468-0475.2012.00564.x

Access Statistics for this article

German Economic Review is currently edited by Peter Egger, Almut Balleer, Jesus Crespo-Cuaresma, Mario Larch, Aderonke Osikominu and Georg Wamser

More articles in German Economic Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().