Title: Entry barriers and their macroeconomic impact in the EU: an assessment using QUEST III
Publisher: Publications Office of the European Union
Publication Year: 2017
JRC N°: JRC108932
ISBN: 978-92-79-75759-4
ISSN: 1831-9424
Other Identifiers: EUR 28857 EN
OP KJ-NA-28857-EN-N
URI: http://publications.jrc.ec.europa.eu/repository/handle/JRC108932
DOI: 10.2760/722488
Type: EUR - Scientific and Technical Research Reports
Abstract: 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.
JRC Directorate:Growth and Innovation

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