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Entry regulation and international trade

Qingran Wang, Haibin Wu, Jun Xu and Jiaren Pang

Applied Economics Letters, 2017, vol. 24, issue 3, 182-185

Abstract: We use cross-country, cross-industry data to analyse the relationship between entry regulation and international trade. We find robust evidence that entry regulation discourages exports of industries with low natural barriers to entry. This implies that, in international markets, countries with heavy entry regulation have a comparative disadvantage in industries that are technologically easy to enter. Further analysis shows that the result is partly due to the negative impact of entry regulation on productivity.

Date: 2017
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DOI: 10.1080/13504851.2016.1176105

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