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Do Market Regulation and Financial Imperfections Affect Firm Size? New Empirical Evidence

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  • Raquel Fonseca

    ()
    (University of Salerno and CSEF)

  • Natalia Utrero González

    ()
    (Universidad Autonoma de Barcelona and CSEF)

Abstract

This paper investigates the importance that market regulation and financial imperfections have in firm size. We analyse institutions affecting labour market as Employment Protection Laws (EPL) and Product Market Regulation (PMR). Moreover, we study the effects of these institutions on firm growth. We use data from 29 industrial sectors across 15 developed countries. We find that market regulations related to financial imperfections help to explain differences in firm structure across countries.

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Bibliographic Info

Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 119.

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Date of creation: 01 May 2004
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Handle: RePEc:sef:csefwp:119

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Keywords: Financial development; labour market institutions; firm structure;

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Cited by:
  1. Raquel Fonseca & Natalia Utrero-González, 2005. "Financial Development, Labor and Market Regulations and Growth," Working Paper 200503, Department of Business Economics, Universitat Autonoma de Barcelona.

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