IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/9027.html
   My bibliography  Save this paper

Entry Barriers, Idiosyncratic Distortions, and the Firm-Size Distribution

Author

Listed:
  • Fattal Jaef,Roberto N.

Abstract

This paper studies the interaction between barriers to firm entry and distortions to allocative efficiency in a standard model of firm dynamics. It derives a strategy to infer entry barriers based on cross-country differences in the firm size distribution, cross-country estimates of idiosyncratic distortions, and equilibrium conditions of the model. The strategy yields entry barriers that are well captured by regulation-based indicators in advanced economies but are largely underestimated in middle- and low-income countries. Regulation-based indicators cannot account for cross-country differences in average firm size and underestimate the aggregate productivity gains associated with their removal by up to 8 percent on average.

Suggested Citation

  • Fattal Jaef,Roberto N., 2019. "Entry Barriers, Idiosyncratic Distortions, and the Firm-Size Distribution," Policy Research Working Paper Series 9027, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9027
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/735701569588825933/pdf/Entry-Barriers-Idiosyncratic-Distortions-and-the-Firm-Size-Distribution.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ranasinghe, Ashantha, 2024. "Gender specific distortions, entrepreneurship and misallocation," Journal of Economic Dynamics and Control, Elsevier, vol. 162(C).
    2. Andrea Cintolesi & Sauro Mocetti & Giacomo Roma, 2024. "Productivity and entry regulation: evidence from the universe of firms," Temi di discussione (Economic working papers) 1455, Bank of Italy, Economic Research and International Relations Area.
    3. Stephen Ayerst & Duc Nguyen & Diego Restuccia, 2024. "The Micro and Macro Productivity of Nations," Working Papers tecipa-779, University of Toronto, Department of Economics.
    4. Munseob Lee & Yongseok Shin, 2024. "The plant‐level view of Korea's growth miracle and slowdown," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 57(3), pages 704-725, August.
    5. Amaral, Afonso & Morgan, M. Granger & Mendonça, Joana & Fuchs, Erica R.H., 2023. "National core competencies and dynamic capabilities in times of crisis: Adaptive regulation of new entrants in advanced technology markets," Research Policy, Elsevier, vol. 52(4).
    6. Andrea Colciago & Marco Membretti, 2024. "Barriers to Entry and the Labor Market," Working Papers 813, DNB.

    More about this item

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:wbk:wbrwps:9027. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.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.