Entry barriers and their macroeconomic impact in the EU: an assessment using QUEST III
Cristiana Benedetti-Fasil (),
Miguel Sanchez-Martinez () and
Peder Christensen ()
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Cristiana Benedetti-Fasil: European Commission – JRC, https://joint-research-centre.ec.europa.eu/index_en
Peder Christensen: European Commission - JRC, https://joint-research-centre.ec.europa.eu/index_en
No JRC108932, JRC Research Reports from Joint Research Centre (Seville site)
Entry barriers make markets less contestable and thereby reduce competition, resulting in lower TFP, GDP and employment growth. Following the Lisbon strategy, Member States increasingly adopted measures to reduce the costs of starting a business. This paper quantifies the macroeconomic impact of such policies and identifies the main structural characteristics still driving the differences across Member States. In general, countries with high entry barriers and a less developed R&D sector seem to benefit proportionally more from a reduction of the so-called red tape barriers. Growth of GDP, TFP and employment could be further enhanced by also improving access to finance. Countries with a more developed R&D sector experience stronger growth in the long run when the reduction of the red tape barriers is accompanied by an improved access to finance.
Keywords: Entry barriers; innovation; economic growth; macroeconomic modelling (search for similar items in EconPapers)
Pages: 28 pages
New Economics Papers: this item is included in nep-ent, nep-ino and nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:ipt:iptwpa:jrc108932
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