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Business Dynamics and Red Tape Barriers

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  • Daria Ciriaci

Abstract

This study examines the impact of reforms aimed at reducing red tape barriers for new firms and new exporters in 17 EU Member States. The results confirm that higher bureaucratic barriers are associated with lower entry dynamics and suggest that recent reforms in Portugal, Spain and Italy should have a significant positive impact. The ability of new firms to enter markets is a key element of the transmission mechanism through which market reforms ultimately affect productivity and growth. Reforms that make it easier for new firms to enter therefore have the added benefit of enabling other competition-enhancing reforms to achieve their maximum impact. The report looks at data for Austria, Belgium, the Czech Republic, Germany, Denmark, Estonia, Spain, Finland, France, Hungary, Italy, the Netherlands, Poland, Portugal, Sweden, Slovakia and the UK between 2004 and 2011.

Suggested Citation

  • Daria Ciriaci, 2014. "Business Dynamics and Red Tape Barriers," European Economy - Economic Papers 2008 - 2015 532, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0532
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    Citations

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    Cited by:

    1. Ciriaci, Daria & Grassano, Nicola & Vezzani, Antonio, 2019. "Regulations and location choices of top R&D investors worldwide," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 29-42.
    2. Ioana Maria BUCERZAN, 2015. "The Propagation Of Insolvency Among Business In Romania," EURINT, Centre for European Studies, Alexandru Ioan Cuza University, vol. 2, pages 64-79.
    3. Aida Caldera Sánchez & Alain de Serres & Naomitsu Yashiro, 2017. "Reforming in a Difficult Macroeconomic Context: A Review of Issues and Recent Literature," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 8(01), pages 1-41, February.
    4. Anderton, Robert & Di Lupidio, Benedetta & Jarmulska, Barbara, 2020. "The impact of product market regulation on productivity through firm churning: Evidence from European countries," Economic Modelling, Elsevier, vol. 91(C), pages 487-501.
    5. Erik Canton & Philipp Mohl & Adriana Reut & Melanie Ward-Warmedinger, 2016. "How to make the Economic and Monetary Union more resilient?," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 15(3), pages 7-18, December.
    6. Erik Canton & Nicolas Carnot & Ulrich Clemens & Martin Larch & Philipp Mohl & Nigel Nagarajan & Adriana Reut & Borek Vasicek & Melanie Ward-Warmedinger, . "Quarterly Report on the Euro Area (QREA), Vol.15, No.3 (2016)," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Chiara Tomasi & Fabio Pieri & Valentina Cecco, 2023. "Red tape and industry dynamics: a cross-country analysis," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 50(2), pages 283-320, June.
    8. Cristiana Benedetti-Fasil & Miguel Sanchez-Martinez & Peder Christensen, 2017. "Entry barriers and their macroeconomic impact in the EU: an assessment using QUEST III," JRC Research Reports JRC108932, Joint Research Centre.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis

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