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Entry regulation and international trade

Author

Listed:
  • Qingran Wang
  • Haibin Wu
  • Jun Xu
  • Jiaren Pang

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.

Suggested Citation

  • Qingran Wang & Haibin Wu & Jun Xu & Jiaren Pang, 2017. "Entry regulation and international trade," Applied Economics Letters, Taylor & Francis Journals, vol. 24(3), pages 182-185, February.
    • Handle: RePEc:taf:apeclt:v:24:y:2017:i:3:p:182-185
    DOI: 10.1080/13504851.2016.1176105
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    References listed on IDEAS

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    1. George J. Stigler, 1971. "The Theory of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 3-21, Spring.
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    5. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    6. Alessandro Nicita & Marcelo Olarreaga, 2007. "Trade, Production, and Protection Database, 1976--2004," The World Bank Economic Review, World Bank, vol. 21(1), pages 165-171.
    7. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
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