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논문 기본 정보

자료유형
학술저널
저자정보
저널정보
한국경제연구학회 Korea and the World Economy The Journal of the Korean Economy Vol.8 No.1
발행연도
2007.5
수록면
1 - 20 (20page)

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초록· 키워드

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This empirical study shows how entry regulations deter the entry and exit rates of firms. The effects of legal entry regulation on the entry and exit rates taken together, entry regulation in itself inevitably decreases the degree of competition. Specifically, this paper shows that legal entry regulations at the four-digit level industries provided enough rent for incumbent firms in 1992 before the regulatory reform. The statistical analysis in this paper also show that firms belonging to industries regulated by legal entry barriers in 1992 but not regulated in 2001 because of subsequent legal entry deregulation have lost 15.2% of economic rent in terms of operating income to sales. This result is derived from comparing two cohorts of firms, a “treatment” cohort of firms belonging in industries that were under legal regulations in 1992 that were later deregulated in 2002, and a “control” cohort of firms that faced legal barrier regulations continuously over the both periods. Using the difference in difference method the net effect of basic regulatory regime change between the two reference years on a firms’ overall economic performance, controlling for the effect of legal entry regulation on a firms’ economic performance is also gauged. A 0.41% gain in economic performance is observed with the after-regulatory reform year anonymous referees of 2001. This efficiency gain is partly secured by the enormous exit of marginal firms following stronger competition pressure in 2001, i.e., after regulatory reforms. Also remaining firms facing higher degree of competition are forced to reduce costs in order to survive. These two factors generated a 0.41% overall enhancement in economic performance. All things taken together, the empirical results in this paper show that further entry deregulation has a positive effect on firms’ economic efficiency, largely by deepening the degree of competition and driving out incompetent firms.

목차

1. INTRODUCTION
2. DATA AND ENTRY REGULATION STATUS
3. EMPIRICAL MODEL
4. EMPIRICAL RESULTS AND IMPLICATIONS
5. CONCLUSION
REFERENCES

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