Entry Costs and Quality of Business Environment: A Critical Analysis
Revista de Administração Do Mackenzie, Vol. 11, No. 5, 2010
11 Pages Posted: 26 Nov 2010
Date Written: November 26, 2010
Transaction costs are the costs to protect property rights. Institutions are shaped in order to control transaction costs in society. Studies have been developed to measure transaction costs both at the macro and microeconomic levels. Entry costs, i.e., the cost to start up a new business are considered a proxy for business environment quality, being also interpreted as a proxy to transaction cost measurement. This paper presents new elements in order to amplify the potential of research in business environment, particularly business entry costs. It stresses the limitation related to two theoretical points: first, the near decomposability of one complex transaction, and second, the complementarity between ex-ante and ex-post transaction costs, both related to the methodology adopted to measure business entrance costs.
Note: Downloadable document is in Portuguese.
Keywords: Entry Costs Measurement, Ex-Ante and Ex-Post Transaction Costs, Transaction Costs, Start Up Costs, Business Environment
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