IDEAS home Printed from https://ideas.repec.org/p/bbz/fcpwps/22.html

Barriers to Entry and Development

Author

Listed:
  • Arilton Teixeira

    (FUCAPE Business School)

  • Berthold Herrendorf

Abstract

We ask whether barriers to entry are a quantitatively important reason for the income gap between developing countries and the U.S. We develop a tractable general equilibrium model that captures the effects of barriers to entry and the other main classes of distortion typically considered in the development literature. We carry our model to the data and ask it to match the main development facts from the Penn World Table. We find that this requires large barriers to entry in developing countries, which account for about half of the income gap between developing countries and the U.S.

Suggested Citation

  • Arilton Teixeira & Berthold Herrendorf, 2009. "Barriers to Entry and Development," Fucape Working Papers 22, Fucape Business School.
    • Handle: RePEc:bbz:fcpwps:22
    as

    Download full text from publisher

    File URL: http://www.fucape.br/_public/workingpapers/22-2009.pdf
    File Function: Primeira Versão, 2009
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jose E. Galdon Sanchez & James A. Schmitz, 2003. "Competitive pressure and labor productivity: world iron ore markets in the 1980s," Quarterly Review, Federal Reserve Bank of Minneapolis, vol. 27(Spr), pages 9-23.
    2. SchmitzJr, James A., 2001. "Government production of investment goods and aggregate labor productivity," Journal of Monetary Economics, Elsevier, vol. 47(1), pages 163-187, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Arilton Teixeira & James Schmitz, 2007. "Privatization’s Impact on Private Productivity: The Case of," 2007 Meeting Papers 798, Society for Economic Dynamics.
    2. Steven Davis & Cheryl Grim & John Haltiwanger, 2008. "Productivity Dispersion and Input Prices: The Case of Electricity," Working Papers 08-33, Center for Economic Studies, U.S. Census Bureau.
    3. Pereira, Ricardo Antonio de Castro & Ferreira, Pedro Cavalcanti, 2006. "Impactos de bem-estar da privatização de infra-estrutura," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 633, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    4. Gomes, Victor & Teixeira, Arilton & Bugarin, Mirta Sataka & Ellery Jr, Roberto, 2010. "From a Miracle to a Disaster: the Brazilian Economy in the Last 3 Decades," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 30(1), October.
    5. Berthold Herrendorf & Arilton Teixeira, 2005. "How Barriers to International Trade Affect TFP," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 8(4), pages 866-876, October.
    6. Hirakata, Naohisa & Sunakawa, Takeki, 2019. "Financial frictions, capital misallocation and structural change," Journal of Macroeconomics, Elsevier, vol. 61(C), pages 1-1.
    7. Jan, Grobovsek, 2013. "Development Accounting Within Intermediate Goods," SIRE Discussion Papers 2013-42, Scottish Institute for Research in Economics (SIRE).
    8. Germeshausen, Robert & Panke, Timo & Wetzel, Heike, 2014. "Investigating the influence of firm characteristics on the ability to exercise market power: A stochastic frontier analysis approach with an application to the iron ore market," ZEW Discussion Papers 14-105, ZEW - Leibniz Centre for European Economic Research.
    9. Luca Farè, 2022. "Exploring the contribution of micro firms to innovation: does competition matter?," Small Business Economics, Springer, vol. 59(3), pages 1081-1113, October.
    10. Jan Boone & Jacob K. Goeree, 2010. "Optimal market design," IEW - Working Papers 479, Institute for Empirical Research in Economics - University of Zurich.
    11. Wen, Huwei & Li, Nuoyan & Lee, Chien-Chiang, 2021. "Energy intensity of manufacturing enterprises under competitive pressure from the informal sector: Evidence from developing and emerging countries," Energy Economics, Elsevier, vol. 104(C).
    12. Ferreira, Pedro Cavalcanti & Pessôa, Samuel de Abreu & Veloso, Fernando A., 2014. "Distortions in the investment goods sector and productivity decline," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 755, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    13. Tobias Kretschmer & Eugenio J. Miravete & Jose C. Pernias, 2012. "Competitive Pressure and the Adoption of Complementary Innovations," American Economic Review, American Economic Association, vol. 102(4), pages 1540-1570, June.
    14. Jacobi, Daniel & King, Elizabeth M. & Montenegro, Claudio & Orazem, Peter, 2025. "Governance, Risks, and Returns to Human Capital," ISU General Staff Papers 202504141344270000, Iowa State University, Department of Economics.
    15. Parente, Stephen L. & Prescott, Edward C., 2005. "A Unified Theory of the Evolution of International Income Levels," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 21, pages 1371-1416, Elsevier.
    16. Matthew Backus, 2020. "Why Is Productivity Correlated With Competition?," Econometrica, Econometric Society, vol. 88(6), pages 2415-2444, November.
    17. Guner, Nezih & Ventura, Gustavo & Yi, Xu, 2006. "How costly are restrictions on size?," Japan and the World Economy, Elsevier, vol. 18(3), pages 302-320, August.
    18. Brown, Mark & Ferguson, Shon M. & Viju, Crina, "undated". "Agricultural Trade Reform, Reallocation and Technical Change: Evidence from the Canadian Prairies," 2017 International Congress, August 28-September 1, 2017, Parma, Italy 263492, European Association of Agricultural Economists.
    19. Bridgman, Benjamin, 2015. "Competition, work rules and productivity," Journal of Economic Dynamics and Control, Elsevier, vol. 52(C), pages 136-149.
    20. Vicente Cuñat & Maria Guadalupe, 2009. "Globalization and the Provision of Incentives inside the Firm: The Effect of Foreign Competition," Journal of Labor Economics, University of Chicago Press, vol. 27(2), pages 179-212, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bbz:fcpwps:22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adriana Gasparino The email address of this maintainer does not seem to be valid anymore. Please ask Adriana Gasparino to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fucapbr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.