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

See all articles by Decio Zylbersztajn

Decio Zylbersztajn

University of São Paulo (USP) - Department of Administration

Date Written: November 26, 2010

Abstract

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

Suggested Citation

Zylbersztajn, Decio, Entry Costs and Quality of Business Environment: A Critical Analysis (November 26, 2010). Revista de Administração Do Mackenzie, Vol. 11, No. 5, 2010, Available at SSRN: https://ssrn.com/abstract=1715562

Decio Zylbersztajn (Contact Author)

University of São Paulo (USP) - Department of Administration ( email )

Av. Prof. Luciano Gualberto
908 - Predio 1 Sala C14
Sao Paulo 05508-900
Brazil
55-11-3032-5966 (Phone)
55-11-3032-5966 (Fax)

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