ENTRY COSTS AND QUALITY OF BUSINESS ENVIRONMENT: A CRITICAL ANALYSIS
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 consid...
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| Format: | article |
| Status: | Published version |
| Publication Date: | 2010 |
| Country: | Brasil |
| Institution: | Universidade Presbiteriana Mackenzie (MACKENZIE) |
| Repository: | RAM. Revista de Administração Mackenzie |
| Language: | English Portuguese |
| OAI Identifier: | oai:ojs.editorarevistas.mackenzie.br:article/1007 |
| Online Access: | https://editorarevistas.mackenzie.br/index.php/RAM/article/view/1007 |
| Access Level: | Open access |
| Keyword: | Entry costs measurement Ex-ante and ex-post transaction costs Transaction costs Start up costs Business environment. Entry Costs Measurement Transaction costs. |
| Summary: | 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. |
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